Why North American Lithium Player Usha Resources (TSXV:USHA) (OTC:USHAF) Shifted Its Flagship Focus Towards a Significant Ontario Hard Rock Portfolio
Analysts are predicting that more than 300 new mines will be needed to meet the soaring demand for electric vehicles (EVs) by 2035[1]. With approximately 3% of the world’s lithium reserves[2], there are calls for Canada to quickly ramp up production of critical minerals to play a global leadership role, according the head of the International Energy Agency[3].
Canada stands ready to contribute significantly, currently ranking sixth globally with 681,000 tonnes of lithium reserves within its borders[4].
As of early 2023, Canada has committed more than C$344 million ($249.5 million) to its federal critical mineral strategy[5]—aiming to bolster domestic supply chains for critical minerals like lithium, and supporting the nation’s transition to green energy and the digital economy.
While Canada has, until recently, seen limited lithium production, this is changing rapidly. Canada’s estimated 3.2 million tonnes of lithium oxide resources from hard rock deposits are just the beginning.
Various companies are actively developing lithium projects, ranging from traditional hard rock mining to innovative methods like extracting lithium from oilfield brines and industrial wastewaters. These efforts are spread across several provinces, but the bulk of the current attention is centering around major pegmatite lithium discoveries in both Ontario and Quebec.
Canada’s reputation as a significant holder of lithium reserves, coupled with ongoing developments like the North American Lithium (NAL) operation in Quebec which recently celebrated the production of saleable lithium concentrate[6], indicates a promising future.
But even more so, there’s been massive discoveries and resources reported on the other side of the border in Ontario, mostly focused on lithium-bearing hard rock pegmatite formations.
The appeal of the Ontario lithium landscape is reaching a fever pitch, as companies clamor for the best real estate that comes with massive potential.
With a VERY promising Ontario hard rock lithium portfolio that’s rapidly growing and developing, one company that’s making a push as a serious North American lithium player is Usha Resources Ltd. (TSXV:USHA) (OTC:USHAF).
The Canadian miner now holds significant dual asset exposure, with its flagship White Willow asset that’s analogous to a ~10Mt resource, and another promising lithium brine asset in Nevada.
But through a string of optimistic releases and results, White Willow has emerged as USHA’s new flagship asset—a hard rock property that can no longer be ignored.
As seen at the Patriot Battery Metals’ Corvette Project, which has over 20km of trend, lithium pegmatite swarms occur in clusters, each of which has the potential to become a deposit. Now USHA has 10 primary target areas across its +25km trend that include two highly-evolved LCT pegmatite swarms at Bingo and Maple Leaf on the White Willow[7].
Given its timing right at beginning of its campaign to grow its flagship asset and to generate a resource estimate in 2023 on its brine asset, Usha Resources Ltd. (TSXV:USHA) (OTC:USHAF) is currently at a crucial catalyst point in its story, with plenty of opportunity to look forward to ahead.
Let’s now dive deeper into why Usha Resources Ltd. (TSXV:USHA) (OTC:USHAF) is positioned to be an important player in the domestic lithium supply chain shift to come…
7 Reasons Investors Should HONE IN on Usha Resources Ltd. (TSXV:USHA) (OTC:USHAF)
1 Flagship White Willow Lithium Project: Highly evolved LCT-pegmatite project with a mapped pegmatite system that has ~25km strike, is open, and is analogous to the Seymour Lake Deposit which has ~9.9Mt at 1.04% Li2O. It has multiple high-grade tantalite showings up to ~14.6% Ta2O5 (or 120,000 ppm Ta); and has Li2O assayed up to ~0.5%. Ore-grade tantalum is typically >150 ppm and is seen at these levels in multiple major lithium deposits.
2 Dual Asset Exposure Through Jackpot Lake, US Lithium Brine: As the sole owner of claims within the basin covering 3,526 hectares, USHA’s lithium brine project in Nevada is analogous to Clayton Valley, home to Albemarle’s Silver Peak Mine, which is currently the only domestic producer in the USA. This project is 43-101 resource drilling ready.
3 Well Structured: With only ~48M shares outstanding, of which ~70% are held by insiders, management, and strategic shareholders, USHA stands out as one of the better structured lithium developers in its class.
4 Well Funded: With ~$1.5M in working capital in place, USHA’s well equipped with plenty of runway to execute programs at each of its projects.
5 Well Managed: Collectively, USHA management has over 150 years of experience in the capital markets and exploration sectors, while also being backed by highly sought after Qualified Persons, including the mind behind Tier 1 assets such as Galaxy’s Sal de Vida, Millennial Lithium’s Pasto Grandes, and Lithium America’s Cauchari-Olaroz Deposits.
6 Strong Project Pipeline: With seven wholly-owned hard rock lithium projects located in Ontario, covering over 50,000 hectares of roughly prospective tenure, and an advanced lithium brine project in Nevada, USHA has plenty of exciting developments underway.
7 Early Mover Opportunity: Trading at a ~$7.7M market cap and an EV of ~6.2M, USHA is significantly discounted to peers in each of the lithium pegmatite and brine spaces.
Lithium Demand Predicted to Skyrocket
The International Energy Agency projects a 13x increase in demand for lithium between 2020-2040, based on policies in place in May 2021.[8]
According to S&P Global Market Intelligence’s Lithium and Cobalt September 2022 Commodity Briefing Service, there’s a significant lithium supply deficit forecast to start as early as 2024 due to sustained demand growth and a lack of producing mines.[9]
Despite a current lithium supply surplus that’s grown from last year, S&P Global Commodity Insights is forecasting that to narrow over the next three years[10]. Other analysts at BMI (a Fitch Solutions research unit) is projecting the global lithium supply is expected to enter a deficit relative to demand by 2025[11].
It’s important to note that S&P also states Argentina, Canada, and the USA host more than half of the projects in the post-PEA pipeline.
Now both the USA and Japan are calling for global collaboration to meet growing battery demand[12]. The Government of Canada has seen the situation become serious enough to order three Chinese companies to divest their lithium mining holdings within the country[13], and committed billions to invest in the EV battery metal supply chain[14].
Hard Rock Lithium in Canada
Usha Resources Ltd. (TSXV:USHA) (OTC:USHAF) certainly didn’t sit on the sidelines Canada’s hard rock lithium scene started to gain momentum in 2023. Since acquiring the assets in early 2023[15], USHA has made significant strides with its White Willow project, which has quickly become the company’s flagship asset within its Ontario Pegmatite Portfolio.
Within months of the acquisition, USHA’s team discovered a second significant lithium-cesium-tantalum pegmatite dyke swarm, dubbed “Bingo”, which led to a more-than-tripling of the LCT pegmatite trend on the property to a potential strike length of over 25km that’s open at both ends.[16]
They very quickly followed that up by identifying ten key drill targets across that strike length[17].
Also shortly after the first announcement, Usha expanded the asset through a series of acquisitions to 861 mining claims and 18,357 hectares by acquiring the contiguous Nym and Rubidium Ridge Projects[18]—signifying the confidence the team has in the location.
Collectively the White Willow property present a unique and timely opportunity to capitalize on Canada’s rapidly growing lithium market.
To better understand White Willow’s flagship significance, let’s break it down for you in simple terms:
Assay Highlights: When analyzing rock samples from White Willow, significant findings include:
- High levels of lithium (Li2O), which is vital for batteries.
- Cesium (Cs) and rubidium (Rb) levels that indicate a fertile system, potentially containing valuable minerals like spodumene.
- Tantalum (Ta) concentrations, which is another valuable resource for electronics and aerospace industries.
Location and Accessibility: White Willow spans around 20,000 hectares and is situated about 170 kilometers west of Thunder Bay, Ontario. It’s conveniently adjacent to Highway 11, making it easily accessible. Plus, the property has a network of logging roads and a main power transmission line running through it, which is a big plus for any potential operations.
Geological Sweet Spot: White Willow is located in what geologists call the “Goldilocks” zone of the metasedimentary Quetico subprovince, just 6km away from a significant fault. This geological neighborhood has a history of hosting valuable deposits, like the nearby Georgia Lake and Seymour Lake deposits.
Rich Lithium Potential: The heart of White Willow lies in its LCT-pegmatite trend, which stretches for over 25km in both directions. Within this trend, there are two main areas of interest: Maple Leaf and Bingo.
- Maple Leaf: This area is roughly 8km by 1km in size, with about 3km meticulously mapped. There are 47 confirmed LCT-pegmatites here, including a massive one that measures around 350m by 70m. It’s important to note the presence of high-grade tantalite, which can be valuable for various industries and is indicative of a potentially high-grade system. With over 600 samples, results show that there are a series of high-priority targets that could bear spodumene, the primary lithium bearing mineral in hard rock deposits.
- Bingo: Bingo covers an area of approximately 2km and is open in both directions. Two large pegmatites here, if connected, would form a substantial formation over about 1.2km. Initial geochemical results show promising signs, including high lithium content, which is a crucial ingredient in batteries for electric vehicles
USHA’s Prime Real Estate
The Government of Canada’s Critical Minerals Strategy[19] has led to an earmarked $3.8 billion in funding over the next 8 years towards for critical minerals development.[20]
Based on map geology, many companies have recently staked properties in Ontario and Quebec, but Usha’s management believes they have something special in the White Willow.
The White Willow Property is confirmed to host a fertile LCT system with a presence of two highly evolved LCT-pegmatite dikes, which came with samples assaying as high as 0.5% Li2O and 14.64% Ta2O5 in and around the dikes. As well, limited surface sampling elsewhere has identified very anomalous lithium values in numerous samples above 300ppm with several samples assaying above 0.40% Li2O.
USHA’s Premium Timing
Typically, the biggest gains of a mining story happen closer to the beginning of a breakout opportunity, like a new discovery, favorable resource estimate.
Despite being armed with historical data, and with a resource estimate for its Jackpot Lake Project on the horizon, Usha Resources Ltd. (TSXV:USHA) (OTC:USHAF) remains at this stage in what’s known as the Pre-Discovery phase, as drills are on site, but we haven’t received their results yet.
And it’s because of this that the market is on standby before it gives USHA a proper valuation based on the lithium under its property.
As of September 21, 2023, USHA is only being given a valuation of US$5.3M , whereas many peers are trading at 9-20X+. If you subtract out the company’s working capital of ~US$1.1M (from C$1.5M), and you get roughly the SAME market cap as USHA was given back in November 2021, when the company had no cash in place.[21]
But times have changed, and USHA is holding two very promising assets in Canada and the USA, and moving the pieces into place to really make some noise.
Therefore, it’s worth taking a look at its potential class of peers in the lithium space, in order to see where USHA could be in the very near future.
Below is a table of peers with similar promising lithium projects:
Company | Symbol | Share Price (USD) | Mkt Cap (USD) | Primary Lithium Assets |
Usha Resources | TSXV:USHA
OTC:USHAF |
$0.11 | $5.3M | White Willow (Pre-Discovery, LCT), Jackpot Lake (Pre-Resource, Brine) |
Power Metals Corp. | TSXV:PWM OTC:PWRMF |
$0.27 | $44.7M | Case Lake
(new LCT discoveries)[22] |
Benz Mining Corp. | TSXV:BZ OTC:BENZF |
$0.28 | $47.2M | Ruby Hill West Lithium Project (new LCT discoveries)[23] |
Avalon Advanced Materials | TSX:AVL OTC:AVLNF |
$0.09 | $51.4M | Separation Rapids Lithium Project (Preliminary Economic Assessment) 8.12 Mt @ 1.37% Li2O M+I 1.20 Mt @ 1.33% Li2O Inf[24] |
Green Technology Metals Limited | OTC:GTMLF | $0.35 | $96.7M | Seymour Project (Preliminary Economic Assessment Underway) 9.9 Mt @ 1.04% Li2O (Ind + Inf)[25] |
Rock Tech Lithium | TSXV:RCK
OTCQX:RCKTF |
$1.07 | $103.5M | Georgia Lake Spodumene Project (Pre-Feasibility) 10.6 Mt Li2O Indicated 4.2 Mt Li2O Inferred[26] |
Brunswick Exploration | TSXV:BRW
OTC:BRWXF |
$0.67 | $126.4M | Mirage Project (Pre-Discovery)[27],[28] |
Patriot Battery Metals | TSXV:PMET
OTCQX:PMETF |
$8.03 | $898.6M | Corvette Property/CV5 109.2 Mt @ 1.42% Li2O, Inferred[29] |
*share price and market cap taken from Yahoo! Finance on September 21, 2023
COMPARABLE #1 – Wisa Lake (Green Technology Metals aka GT1)
Usha Resources Ltd. (TSXV:USHA) (OTC:USHAF) emphasizes that White Willow is on trend to the east of the Wisa Lake Lithium project of Green Technology Metals where an exploration target of 8-10 Mt at 0.8-1.5% Li2O, and where grab samples have assayed over 1% Li2O and as high as 6.38% Li2O.
COMPARABLE #2 – Separation Rapids (Avalon Advanced Metals)
USHA has also stated White Willow is proximal to the Georgia Lake pegmatite field, and the Separation Rapids Lithium deposit of Avalon Advanced Metals. The Separation Rapids Lithium deposit comes with a resource estimate of 8.12 Mt @ 1.37% Li2O Measured + Indicated, and 1.20 Mt @ 1.33% Li2O Inferred. [30]
COMPARABLE #3 – Corvette Property (Patriot Battery Metals)
Last (but certainly not least), USHA has justifiably pointed out the similarities between White Willow and the Corvette Property of Patriot Battery Metals, which has over 20km of trend, and lithium pegmatite swarms occurring in clusters. White Willow now has 10 primary target areas across its +25km trend that includes two highly evolved LCT pegmatite swarms at Bingo and Maple Leaf.[31]
Solid Share Structure + Stellar Balance Sheet
Since inception Usha Resources Ltd. (TSXV:USHA) (OTC:USHAF) has kept a tidy share structure, with only ~48.1M shares outstanding, and ~18.1M warrants issued.
Set and fully funded drilling campaign that will take the company through milestones in 2023, USHA has ~$3.4M as recently as March 1, 2023.
Well Managed with Important Experience
Heading up the Usha Resources Ltd. (TSXV:USHA) (OTC:USHAF) is a group of industry experts with a history of wins, with one of the most sought-after QPs in the lithium space. The USHA team includes:
Deepak Varshney, P.Geo. – CEO and Director: Varshney brings over 14 years of experience in the capital markets and mineral exploration and development sector. He’s been responsible for raising tens of millions of dollars in equity financings.
Adrian Smith – Director: Smith brings over 14 years of experience working in the mining and exploration industries. He currently serves as CEO of ArcPacific Resources and Board member of ML Gold Corp. and Go Cobalt Mining Corp. Smith has been responsible for raising tens of millions of dollars in equity financings.
Navin Varshney, P.Eng. – Director: Varshney brings over 30 years of experience in the capital markets and mineral exploration and development sector. He has significant experience specializing in developing, structuring and financing venture capital companies. Varshney has founded multiple TSX-listed issuers, and is the former President, CEO, and CFO of multiple TSX-listed issuers and serving on many public company boards including Manganese X Energy Corp.
Andrew Tims, P.Geo. – Qualified Professional: Exploration geologist with over 30 years of experience, spending significant time in the Kirkland Lake, Timmins, and Red Lake gold camps. Tims has served as senior exploration geologist at Rainy River Resources that developed the Rainy River resource from 550,000 ounces of gold in 2005 to over six million when it was acquired by New Gold.
Mike Rosko, P.G. – Qualified Professional: Professional geologist with over 30 years of experience, spending significant time assessing aquifer conditions in arid environments throughout the southwestern United States and South America. Rosko brings extensive experience with lithium brine projects including Tier 1 assets such as Galaxy’s Sal de Vida, Millennial Lithium’s Pasto Grandes, and Lithium America’s Cauchari-Olaroz Deposits.
RECAP: 7 Reasons To Seriously Look Into Usha Resources Ltd. (TSXV:USHA) (OTC:USHAF) RIGHT NOW!
1. Flagship White Willow Lithium Project
2. Dual Asset Exposure Through Jackpot Lake, US Lithium Brine
3. Well Structured
4. Well Funded
5. Well Managed
6. Strong Project Pipeline
7. Early Mover Opportunity
After considering the opportunity presented in this report, it should be clear that now is the perfect time to seriously discern the North American lithium space.
However, not all lithium opportunities are equal, especially given the various available options that investors have to choose from.
THIS IS THE PERFECT TIME for smart investors to seriously follow the ongoing Usha Resources Ltd. (TSXV:USHA) (OTC:USHAF) story—because the drilling rigs are in motion, and in 2023 we should be receiving updates that could move the needle.
So, do your due diligence, and don’t forget to click here to subscribe for email updates and make sure not to miss any of USHA’s news and milestones.
– Editorial Staff
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Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USA News Group is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Usha Resources Ltd. advertising and digital media from the company directly (“the Company”). There may be 3rd parties who may have shares of Usha Resources Ltd., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. MIQ reserves the right to buy and sell shares of Usha Resources Ltd. at any time hereafter without any further notice. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated by MIQ has been approved by the above mentioned company; this is a paid advertisement, and we own shares of the mentioned company which were purchased in the open market that we will sell commencing immediately, and we also reserve the right to buy shares of the company in the open market, or through further private placements and/or investment vehicles.
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SOURCES CITED:
[1] https://source.benchmarkminerals.com/article/more-than-300-new-mines-required-to-meet-battery-demand-by-2035
[2] https://natural-resources.canada.ca/our-natural-resources/minerals-mining/minerals-metals-facts/lithium-facts/24009
[3] https://www.theglobeandmail.com/politics/article-security-minerals-production-canada-iea/
[4] https://natural-resources.canada.ca/our-natural-resources/minerals-mining/minerals-metals-facts/lithium-facts/24009
[5] https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/energy-transition/030823-canada-boosts-critical-minerals-projects-with-latest-investments
[6] https://www.theassay.com/articles/feature-story/canada-celebrates-production-of-saleable-lithium-concentrate-in-quebec/
[7] https://usharesources.com/usha-resources-identifies-ten-key-drill-targets-across-25-kilometre-strike-at-the-white-willow-lithium-pegmatite-project/
[8] https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions/executive-summary
[9] https://www.spglobal.com/marketintelligence/en/news-insights/research/lithium-project-pipeline-insufficient-to-meet-looming-major-deficit
[10] https://www.morningstar.com/news/marketwatch/20230920269/lithium-supply-may-tighten-in-the-years-ahead-driving-prices-higher-along-with-it#:~:text=The%20surplus%2C%20however%2C%20is%20expected,Global%20Commodity%20Insights%20report%20said.
[11] https://www.cnbc.com/2023/08/29/a-worldwide-lithium-shortage-could-come-as-soon-as-2025.html
[12] https://source.benchmarkminerals.com/article/us-japan-call-for-global-collaboration-to-meet-growing-battery-demand
[13] https://apnews.com/article/technology-canada-business-china-ontario-b8c72593b341d113cfb74c9cbddafa0c
[14] https://www.reuters.com/business/exclusive-canada-spend-c2-bln-mineral-strategy-ev-battery-supply-chain-2022-04-04/
[15] https://finance.yahoo.com/news/usha-resources-enters-hard-rock-110000981.html
[16] https://usharesources.com/usha-resources-discovers-second-lithium-cesium-tantalum-pegmatite-swarm-at-the-white-willow-lithium-project-tripling-strike-to-over-25-kilometres/
[17] https://usharesources.com/usha-resources-identifies-ten-key-drill-targets-across-25-kilometre-strike-at-the-white-willow-lithium-pegmatite-project/
[18] https://usharesources.com/usha-resources-acquires-second-ontario-lithium-project-with-119-reported-prospective-lct-pegmatites/
[19] https://www.canada.ca/en/campaign/critical-minerals-in-canada/canadas-critical-minerals-strategy.html
[20] https://www.financierworldwide.com/energy-transition-and-critical-minerals-in-canada
[21] https://ycharts.com/companies/USHAF/market_cap
[22] https://powermetalscorp.com/projects/case-lake/
[23] https://benzmining.com/projects/ruby-hill-west/
[24] https://avalonadvancedmaterials.com/projects/separation_rapids/
[25] https://www.greentm.com.au/seymour-project
[26] https://www.rocktechlithium.com/news/georgia-lake-project:-pre-feasibility-study-published
[27] https://finance.yahoo.com/news/more-positive-results-exploration-globex-130000868.html
[28] https://brwexplo.ca/wp-content/uploads/2023/08/230823-Brunswick-Exploration-Q2.pdf
[29] https://patriotbatterymetals.com/portfolio/corvette/
[30] https://avalonadvancedmaterials.com/projects/separation_rapids/
[31] https://usharesources.com/usha-resources-identifies-ten-key-drill-targets-across-25-kilometre-strike-at-the-white-willow-lithium-pegmatite-project/