By Meg Flippin, Benzinga
Investors looking at metals beyond gold and silver may be looking at lithium. It's a key ingredient to produce electric vehicles, a market that seems set to take off. In 2020, demand for global lithium reached 292,000 metric tons, and by 2030, it is forecast to hit 2.5 million metric tons.
That growing demand is good news for Sienna Resources Inc. (OTCMKTS: SNNAF), the mining company focused on exploring for and developing high-grade deposits in politically stable, environmentally responsible and ethical mining jurisdictions. It just received approval from the Bureau of Land Management to drill up to five initial locations in its Elko Lithium Project in Nevada, which it recently acquired.
Elko County Project Holds Promise
The project, in Elko County, Nevada, consists of about 1,200 contiguous acres directly bordering the Surge Battery Metals Inc. (OTCMKTS: NILIF) Nevada North Lithium Project. Surges summer drilling program returned multiple zones of high values ranging from 1,000 parts per million to 8,070 parts per million lithium the highest grades for exploration for the Nevada North Lithium Project. While the same results for Siennas project cant be guaranteed, it is promising for the companys business and potentially its shareholders.
We are very excited about this area, especially in light of the fantastic lithium results being drilled by our neighbor, Surge Battery Metals, said Jason Gigliotti, President of Sienna. This area is shaping up to be one of the most exciting lithium addresses in North America and we are very pleased to be right in the heart of it with a planned work program to commence as soon as possible. Surge Battery Metals stock has traded from a year low of $0.045 to a recent high of $1.15 as of this writing, aided by the results of its summer drilling program.
Nevada Rich In Lithium
As it stands, Nevada has one of the highest lithium production potentials in the country. It's home to America's only current lithium production and one of the U.S.s largest lithium deposits. Given its location, it's perfectly suited to supply demand in the U.S. and in Asia. It also helps that Nevada has mining-friendly regulations on the books and is in a stable political environment.
Mining for lithium also has the backing of the U.S. government. The White Houses American Battery Materials Initiative is aimed at securing a reliable and sustainable supply of critical minerals used for power, electricity and EVs. Meanwhile, the Department of Energy is awarding $2.8 billion from the Bipartisan Infrastructure Bill to boost domestic manufacturing.
EVs Getting Ready To Take Off
The mining results and Siennas plan to commence drilling soon come as the market for electric vehicles is taking off. Tesla Inc. (NASDAQ: TSLA), the leading EV maker in the U.S., plans to produce 20 million EVs by 2030 and it's not the only vehicle manufacturer focused on EVs. Ford Motor Co. (NYSE: F), General Motors Co. (NYSE: GM) and Stellantis NV (NYSE: STLA), among others, plan to sell only electrified cars and trucks by 2035.
Sienna is also among the largest landholders in Clayton Valley, Nevada. In June it completed its purchase of Silver Peak South Lithium Project (SPSLP) located in Clayton Valley, Nevada, building on its Blue Clay Lithium Project. This created one large continuous block of approximately 4,700 acres. Clayton Valley is home to the only lithium brine basin in production in North America and is just a few miles from Tesla's Gigafactory outside of Reno, Nevada. Major players in this basin include Schlumberger NV (now named SLB) (NYSE: SLB) and Albemarle Corp. (NYSE: ALB)) with Albemarle currently producing in the basin.
In the deepest part of this basin in Clayton Valley , which is the only basin that produces lithium right now, are Albemarle which is the largest lithium company on earth, Schlumberger (now SLB) which is the largest oil services company on earth and is moving into lithium, and then tiny Sienna Resources trading around $0.05, said Gigliotti. With approximatley $2 million in cash on hand, Sienna seems to have plenty of money for the current exploration plans and intends to be active on several fronts for the rest of the year. Gigliotti also confirmed that the companys management is extremely optimistic about the future and looks forward to what will happen with boots on the ground on these projects.
This post contains sponsored content. This content is for informational purposes only and not intended to be investing advice. Sienna Resources has reviewed and paid for this information.
View source version on newsdirect.com: https://newsdirect.com/news/sienna-resources-gets-license-to-drill-at-its-elko-lithium-project-as-demand-for-lithium-grows-109098438
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Sahyadri Times journalist was involved in the writing and production of this article.