Western Lithium to Profit from Electric Car Stimulus

Gold Stock Bull (08/14/2009)
"My preferred way to profit from the coming lithium boom is through the company Western Lithium, which owns the largest known lithium deposit in North America. The near surface lithium clay deposit is located in Nevada, USA and was initially discovered by the U.S. Geological Survey and Chevron USA in the 1970s. Engineering work completed by Chevron, and later by the U.S. Bureau of Mines in the 1980s, is now being advanced by Western Lithium.

The company's flagship Kings Valley property has a National Instrument 43-101 resource estimate for the initial stage of development and in total hosts a historically estimated 11 million tons of lithium carbonate equivalent (LCE). The project has a well-developed local infrastructure, and Nevada has a long history in the metals and industrial mineral mining industry. The company plans a scoping study during Q3 of 2009, a pre-feasibility study with results from additional drilling during 2010 and projected production by 2013.

Western Lithium is well-funded and debt free with CDN$7.3 million cash on the books. They recently completed a $5.5 million private placement in May of this year and have a market cap of CDN$70 million. . .the stock has broken out recently on heavy volume. While some might view the stock as overbought, I believe lithium mania is only getting started and that Western Lithium will outperform its peers both in the short and long term. Despite the recent spike in price, shares are selling at a premium of just 20% to their highs, which were put in well before the recent flurry of bullish news. The last time the stock made a move like the current one, it continued to produce a gain in excess of 800%!"

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