More companies are continuing to join the lithium exploration race, with newcomer Poseidon Nickel’s shares reaching nearly 26 per cent and Atlas Iron gaining 13 per cent.
Poseidon announced yesterday that its Lake Johnston project in WA contained “high grade lithium bearing pegmatites”, with samples retaining grades of up to 3.85 per cent Li2O. Pegmatites at its Maggie Hays mine also showed positive signs for developing lithium minerals.
The company’s shares increased from 0.9c to 4.4c on a turnover 28.6 million units, nearly ten times more than usual trade.
Atlas Iron also has prospective tenure in areas known to have lithium deposits, with early stage exploration indicating prospects for further work.
The growing demand for electric vehicles has increased the demand for lithium and this demand is expected to increase by more than 10 per cent each year.
Several juniors have already entered the lithium market, including Pioneer Resources, Adelaide Resources, and Altura Mining. However only Galaxy resources is producing lithium at its Mt Cattlin mine, north of Ravensthorpe in WA.
Although there is a rush for exploration, managing director of Altech Chemicals and former managing director of Galaxy Resources Iggy Tan, told Australian Mining not all of them will become producers.
“Not all projects are gonna go ahead, it depends on grade and how well they can develop processing in a short period of time,” he said.