DGR Global Gearing up for the White Gold Rush

Robert Draper writes in his assignment The Rush For White Gold, for the National Geographic, February 2019:

“What gold meant to earlier eras, and petroleum to the previous century, lithium may eclipse in the coming years.” (Draper, 2019)

In this assignment, Draper delivers a comprehensive update on the universal demand for lithium which continues to increase.

Lithium has been found to be highly prevalent in Chile, China, Argentina, Africa, Australia, Portugal, Brazil, United States, Canada and Bolivia; and resource company creator DGR Global is establishing lithium positions in Ghana, Côte d'Ivoire and in Argentina.

Lithium, also being labelled “white gold” has many admirable features, primarily being one of the lightest solid elements on earth and one of the most abundant, making it ideal for portable energy storage. Lithium also powers many of our everyday items such as our phones, laptops, batteries and electric cars (to mention a few). With demand for these items increasing, lithium continues to be a commodity that will be crucial for everyday life in urbanised areas.  

Two of DGR Global’s daughter companies, Iron Ridge Resources (AIM:IRR of which DGR holds a 22.13% stake) and Dark Horse Resources (ASX:DHR of which DGR holds a 16.73% stake) are currently making positive progress with their lithium hard rock and lithium brine exploration projects.

IronRidge Resources is focused on frontier regions in West Africa and is currently exploring two separate lithium projects in highly prospective areas. The Cape Coast Lithium project where Iron Ridge Resources is actively drilling its Ewoyaa discovery, has already boasted high grade drilling results and remains open in all directions. The core being drilled is course spodumene which is the most ideal setting to feed directly to suppliers. IronRidge’s second lithium project in Côte d’Ivoire shows significant lithium potential in areas where there has been little to no modern-day exploration completed – providing IronRidge with a first mover advantage across its large land package. 

“This is a significant lithium discovery; not only have we demonstrated grade and width across multiple drill intersections which are spodumene dominant, the deposit is located within 1km of a bitumen highway, approximately 100km of the operating deep-sea port of Takoradi and has through going grid power; not many projects can boast such credentials, and all wrapped up in the stable, pro-mining jurisdiction of Ghana” says Len Kolff, Chief Geologist, IronRidge Resources.

Ghana - Egyasimanku Hill. An Iron Ridge Resources Lithium project.

Ghana - Egyasimanku Hill. An Iron Ridge Resources Lithium project.

Exploring the riches of Argentina, Dark Horse Resources is securing two main lithium projects – one being a hard rock spodumene project in central Argentina and the other focused on defining a large lithium brine resource in the north.

Dark Horse Resources Geologists site visit in Argentina.

Dark Horse Resources Geologists site visit in Argentina.

In 2016, Goldman Sachs released a special series; ‘What if I told you?’ This series covered future trend topics such as disruptive technologies, space travel and of course, lithium demand. Bob Koort, Head Industrials and Materials Goldman Sachs Research described the commodity as the gasoline of the future. He notes that by 2025, we can expect to see lithium demand triple. Using electric vehicles as an example; electric vehicles represent 3% of global new vehicle sales on the road today, projected to reach more than 20% of global new sales by 2025. (Goldman Sachs, 2016).

When we overlay this positive project progress from both IronRidge Resources and Dark Horse Resources combined with lithium industry trends; an investment into lithium stocks now could provide long term benefits in the future. DGR Global offers a dual gateway into lithium via two different stock exchanges, three different jurisdictions and multiple stages of exploration.  

DGR’s core business model is about recognising the importance of these macro-economic trends and to explore for projects that will yield world-class deposits for future supplies not just in the lithium space, but across a diverse range of commodities.

Reference

Draper, R. (2019). Gearing up for the White Gold Rush. National Geographic. [online] Available at: https://www.nationalgeographic.com/magazine/2019/02/lithium-is-fueling-technology-today-at-what-cost/ [Accessed 2 Feb. 2019].

Goldman Sachs (2016). Lithium is the new gasoline. Available at: https://www.goldmansachs.com/insights/pages/what-if-i-told-you-full/?playlist=0&video=0

This article does not constitute investment advice and should not be relied upon as such.