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Science/Tech See other Science/Tech Articles Title: Mining Belies, Lithium Lies Mining Belies, Lithium Lies By Nick Hodge Written Wednesday, June 8, 2016 When bull runs start people get greedy. They also get stupid. Don't be one of them. This is nothing new. The junior mining space is one of extreme highs and extreme lows, as it relates to both share prices and emotions. And right now both are running high, especially in the gold, silver, and lithium spaces. Bull runs also bring out the unscrupulous in the mining sector. And if you know anything about the mining sector in general — and Vancouver in particular — you know it has a higher per capita population of the unscrupulous than most others. They are coming out now to take your money. Here at Outsider Club, I — as well as our new resource editor Gerardo Del Real — will try to prevent that. Our goal is to make you as much money as possible in the resource space as this bull plays out. But it's also to help you avoid missteps that are easy to make. Some people have no business making recommendations in the space. They couldn't tell a brine pond from a leach pad if their life depended on it — whereas Gerardo has been advising billionaire clients in the resource space for years, and I've learned from the school of hard knocks while entrenching myself in the sector during one of its most protracted bear markets ever. It was Mark Twain who described a mine as “a hole in the ground owned by a liar.” And there's a lot of truth to that. Mining is a complex game. Exploration even moreso. Unless you understand sulphides and oxides, geophysics, radiometrics, resistivity studies, and the like — or can see underground — there is no way to gain a real understanding of a project's potential or detriments. You have to rely on the company to tell you. And the company is always going to tell you its best-case scenario, sometimes bending the truth, other times outright lying. There are countless examples of this. Take Bre-X as just one. As a simple Wikipedia search will tell you: Bre-X Minerals Ltd. based in Calgary, was involved in a major gold mining scandal when it reported it was sitting on an enormous gold deposit at Busang, Indonesia (in Borneo). Bre-X bought the Busang site in March 1993 and in October 1995 announced significant amounts of gold had been discovered, sending its stock price soaring. Originally a penny stock, its stock price reached a peak at CAD $286.50 (split adjusted) in May 1996 on the Toronto Stock Exchange (TSE), with a total capitalization of over CAD $6 billion. Bre-X Minerals collapsed in 1997 after the gold samples were found to be a fraud. Bre-X collapsed and its shares became worthless in one of the biggest stock scandals in Canadian history, and the biggest mining scandal of all time. This is an extreme example to be sure. But less extreme examples happen all the time and for different reasons. Promoters spin tales of prospective properties that really have no chance of being a mine. IR departments bury bad news deep in press releases that laymen don't understand anyway. The case for a sector to become dominant can be overstated and exaggerated. Rare earths and graphite come to mind. Those who bought Rare Earth Elements at $16.00 saw this first-hand as their shares sank to pennies. email.angelnexus.com/ct/35792166:Wd21loYNJ:m:1 : 1079102749:A807A27D3D592C973B60EBCD52524267:r Same for buyers of Molycorp at $70.00. Those shares now trade for 3 cents. email.angelnexus.com/ct/35792167:Wd21loYNJ:m:1 : 1079102749:A807A27D3D592C973B60EBCD52524267:r Around here we view it as our goal to help you avoid those traps as much as it is to get you into what will be the real winners. You've seen that recently from Gerardo in the Outsider Club section of his articles he labels “I call BS.” And there's lots of BS in the mining sector. I see slide decks come across my desk that are absolute jokes. I see companies duping investors with no qualms about it. Especially in the lithium space right now there is a lot of BS going around. Companies are being promoted of which management knows outright they have no chance of being a mine. New companies are buying old properties that have been shown for years to not hold any lithium. As we call it like we see it, you have my word we will never knowingly lead you into one of these traps. We will only steer you toward the most vetted companies, with the most trusted management, that have an actual shot at advancing their asset to production or making a profitable exit for all parties involved. To that end, Resource Stock Digest Premium is now live. It has five open stocks in the portfolio with a full, in-depth analysis of each, including picks in the gold, silver, and uranium spaces. It has a list of three gold companies and two silver companies you should be buying now. Click here to get started with them. There is also a play in the lithium space. A play that isn't reliant on inflated projections or hype about electric cars because it is taking a different approach. It owns several lithium land packages, but it is optioning them out for other companies to explore, thereby reducing capital outflows while keeping upside intact. It also owns very strategic water rights in the Clayton Valley area of Nevada, which is today's hotbed of lithium activity. But you can't mine lithium without water — which no one will tell you. And no other companies in Clayton Valley have water rights — which no one else will tell you. And Clayton Valley's water allocation is maxed out — which no one else will tell you. So it has a real shot of returning extraordinary gains from the current lithium mania without having to drill for anything. Mark my words, a lot of lithium companies' charts will look like those rare earth stocks above in a few years. Our research in lithium — and especially gold and silver — is meant to help you avoid that while maximizing gains. Call it like you see it, Nick Hodge Signature Nick Hodge Poster Comment: Lithium is important for the electric car batteries. There is a Lithium mineral which is found in pegmatites called Lepidolite. I had a specimen of it when I had a mineral collection years ago. https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF- 8#q=lepidolite Post Comment Private Reply Ignore Thread
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