Drilling Near Existing Production Positions ACME Lithium to Capitalize on Favorable Lithium Market

About

ACME Lithium is an explorer and developer focused on domestic lithium production in North America. The company has two flagship lithium projects in Nevada as well as additional lithium exploration projects in Manitoba, Canada and Saskatchewan, Canada.

Interview with ACME Lithium

Flagship Assets Positioned Near Existing Production

ACME Lithium's most advanced project is at Fish Lake Valley in Esmeralda County, Nevada. This lithium clay project sits adjacent to the Thacker Pass lithium mine, which is owned by Lithium Americas and is one of the largest and most advanced lithium projects in North America. Thacker Pass has received approvals and financial backing from major lithium consumers like Toyota, Panasonic and the US government. Construction at Thacker Pass is expected to start within the next 12 months, positioning ACME Lithium's adjacent Fish Lake Valley project to benefit from the development of infrastructure in the region. ACME Lithium is planning an initial drill program at Fish Lake Valley in 2023 to advance this promising project.

The company's other flagship lithium asset is the Clayton Valley Lithium Brine project in Nevada. This project neighbors Albemarle's Silver Peak lithium brine operation, the only producing lithium mine in the United States. In 2022, ACME Lithium made a new lithium brine discovery at Clayton Valley and is currently engaged in an expanded drill program to further delineate resources and the characteristics of the lithium-bearing aquifer. Results from this drill program are expected by Q3 2023 and will support ACME Lithium's plans to establish a maiden resource estimate for the Clayton Valley discovery.

Drilling Underway in Canada Near Existing Production

In Manitoba, Canada, ACME Lithium has acquired a large land position near the Tanco lithium mine, the only current lithium producer in Canada. The company's Manitoba projects benefit from their proximity to Tanco's infrastructure and from geological similarities that provide encouragement for new lithium discoveries in the region. ACME Lithium is carrying out a 5,000 meter drill program focused on their Shaft Lake project, situated just a few kilometers from the Tanco mine. Results from this maiden drill program are anticipated in Q2 2023.

Favorable Lithium Market Outlook

With two drill programs ongoing at flagship lithium projects located next to producing lithium mines in Nevada and Manitoba, ACME Lithium is positioned to deliver significant catalysts for investors in the coming months. Lithium demand is forecast to expand substantially in the 2020s, driven by the accelerating adoption of electric vehicles. However, lithium supply is constrained, with few new projects ready to deliver meaningful volumes of lithium in the near-term. This supply-demand imbalance supports strong long-term pricing for lithium.

While the lithium price has moderated from its peak in 2022, most analysts foresee strong lithium pricing over the next decade as demand outpaces new supply. New lithium projects being evaluated are using conservative long-term price assumptions between $10,000/tonne to $20,000/tonne. Even at the low end of this forecast range, the economics for new lithium projects remain robust.

Conclusion

With drill programs commencing at two projects located adjacent to existing lithium mines, ACME Lithium has positioning in two proven lithium districts and is set to deliver drill results that could significantly re-rate the stock. As the company works to define maiden resources at these assets, it will demonstrate to investors that it is developing assets that can be put into production to meet rising lithium demand. For investors seeking leveraged exposure to surging lithium demand and limited near-term supply, ACME Lithium warrants consideration given the potential catalysts ahead in 2023.