One of the most exciting trends of 2022 is the rapidly increasing interest in companies that are mining critical energy elements to be used in the production and development of critical technology such as the batteries that are required for electric vehicles (EVs).
From batteries to cell phones, the global economy relies on the supply of critical energy elements. Demand for this critical resource has been steadily increasing and we have been working to identify companies that should benefit from the trend. Part of our analysis on critical earth elements mining firms is centered around the management team, the properties owned by the business, the available historical mining data, and the amount of resources (cash and human capital) the company has on hand.
Last month, we highlighted Infinity Stone Ventures Corp. (CSE: GEMS) (OTC Pink: TLOOF) (FSE: B2I) as a leading single source supplier of critical energy metals and believe our readers need to be following the stock after it recently broke out of its trading range. The company owns a portfolio of properties that are strategically located near major critical mineral deposits and occurrences and we consider this to be a core pillar of our investment thesis on it.
Commences a Test Program on Rockstone Graphite Sample
Earlier this week, Infinity Stone singed a contract to engage SGS Labs to conduct a flotation and hydrometallurgical test program on a Rockstone Graphite sample. The primary goal of the test program is the upgrading of the sample to EV battery grade which has a 99.8% purity level.
On top of the test program, additional studies will be performed to investigate the potential for further impurity removal from the purified graphite. If the sample allows the program to explore the production of EV battery-grade graphite, we expect the company to be viewed as an acquisition target and want our readers to be aware of this potential.
Later this month, Infinity Stone expects to receive drilling permits which we expect to be an inflection point for the project. Once the permits are received, the company will drill numerous targets on the property and will target more than 18 additional EM anomalies that have been identified on the project. These anomalies are similar to the discovery anomaly that was previously identified by the management team and we believe this helps de-risk the project.
Since graphite is a key mineral in the production of EV battery cells, we expect positive data to serve as a major growth catalyst for the business. Over the next month, we expect the management team to report important data points and will monitor how the project advances in the near-term.
Expands its Position in a High-Profile Region
Last week, Infinity Stone enhanced its leverage to the James Bay Lithium District by acquiring an additional 2,568 hectares near Patriot Battery Metals’ Corvette Project in Quebec. The land was acquired through staking and the transaction expands the company’s land position in the high-profile region to more than 3,850 hectares.
Based on available data, Infinity Stone’s land package in the James Bay Lithium District includes 21 historically mapped pegmatites and we are bullish on this data point. The acquired acreage includes 12 historically mapped pegmatites on the Taiga Project and the newly staked Hellcat Project. We believe the number of pegmatites on the property de-risks the project and consider this to be another core pillar of our investment thesis.
By acquiring property that is located adjacent to large critical mineral deposits and occurrences in stable mining-friendly jurisdictions, Infinity Stone expects to benefit from the increasing demand from battery and wind turbine manufacturers, nuclear and hydrogen energy producers, and energy metals speculators.
An Industry with Massive Upside Potential
As gas prices are rising, we are noticing increased interest in EVs. We consider the current supply-demand dynamic for EVs to be an important trend for Infinity Stone. We are favorable on how the management team is executing on a strategy to become a one-stop-shop, single source supplier for critical energy metals and we want our readers to be aware of the opportunity.
A few years ago, California Governor Gavin Newsom announced a plan to phase out vehicles that run only on gasoline by 2035. The state recently released a plan to require all new vehicles sold by 2035 to be either electric or plug-in electric hybrids. We believe the legislation could serve as a major catalyst for the EV industry and expect to see additional states and countries follow California’s lead.
If additional large economies jump on the bandwagon, we believe Infinity Stone will be well positioned to benefit from the trend. If you compare the company to other operators in the James Bay Lithium District, you would notice that Infinity Stone is trading at a significant discount (when comparing market capitalizations).
An Undervalued Growth Story
Due to the location of the property, we consider Patriot Battery Metals Inc. (TSX Venture: PMET) to be a great comp for Infinity Stone. When comparing the performance of the operators (based on stock price appreciation), we noted a huge difference between them and expect the trend to change as Infinity Stone continues to execute.
- Patriot Battery Metals has rallied almost 3,000% off its 52-week low and is valued at more than C$570 million
- Infinity Stone has rallied more than 400% off its 52-week low and is valued at less than C$26 million.
Through the staking of additional claims that have strategic exploration potential, Infinity Stone is aggressively expanding its footprint in the rapidly evolving James Bay Lithium District. We are bullish on the region due to the findings that are located near the property. We believe the discoveries on adjacent properties increases the company’s growth prospects and expect additional data to serve as a catalyst.
When compared to other operators in the region, Infinity Stone is undervalued and we expect the trend to change as new data is reported. We believe the number of historically mapped pegmatites on the property is a bullish indicator for Infinity Stone and want our readers to be aware of this.
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