Grid Metals Corp.

Grid Metals has a number of catalysts that will occur in 2023. Most notably Grid is a discovery stage company with growing resources and has a realistic view of what constitutes an economic mineral deposit.  

At Donner Lake Lithium, a steady stream of exploration results will be released in the first half of 2023. This will be concurrent with metallurgical testwork and permitting progress for the bulk sample. An initial resource estimate will then be calculated based on the drilling to date.

The Company will also be announcing progress towards the bulk sample and toll milling arrangement with the Tanco Mine. 

On the base metal side, there will be significant developments including a new mineral resource calculation and additional drilling during the year. Grid is focused on growing its Makwa Mayville resources which may attract a strategic partner to assist in the funding and development of the project.

Sector Dynamics

There is increasing international focus on the effects of climate change and the relationship to carbon emissions. A major portion of carbon emissions comes from the transportation sector and the shift to the adoption of electric vehicles in response to lowering vehicle emissions.

China, the E.U. and the U.S. are now leaders in the adoption of EV's. Lithium and nickel are two of the most important metals used in EV batteries. The demand for lithium, nickel cobalt and copper amongst other metals are forecast to grow significantly over the coming decade due to the adoption rate of EV's globally. 

Demand for critical metals from North America is expected to rise due to the recently enacted Inflation Reduction Act in the U.S. that stipulated that EV manufacturers could be eligible for consumer price credit for purchasing EV's if a sufficient amount of the critical metals are sourced in the U.S. or nations with favourable trading status. 

Significant new amounts of critical metals will be required in the next 5-7 years. While there is considerable supply response coming, the case for elevated critical metals prices is strong due largely to environmental and delays in permitting of new projects. 

Like all business ventures, there are inherent risks that may affect the future viability of Grids’ business. Some of the main risks are:

Exploration and Commodity Risk: Projects depend on the exploration results to deliver sufficient tonnes and grade to deliver resources that have economic potential. Concurrently commodity prices may not be sufficient to justify the development of any particular project. 

Permitting Risk: Grid's projects are located in Canada. There are a variety of factors that may hinder, delay or prevent the permitting, construction or operation of a particular project. These include environmental factors, species at risk or objections from First Nations or other community groups.  

Technical Risk: Exploration and development of mining projects is a highly technical undertaking. The Company may not be able to access sufficient technical expertise to adequately advance its projects.  

Capital and Market risk: The markets for commodities and equities will fluctuate. Downturns in lithium and nickel prices may affect the Company’s ability to access sufficient capital to advance its projects.