American Lithium Minerals (AMLM) is an early-stage U.S. mineral exploration company strategically positioned with interests in America's richest lithium reserves. The company was formed to capitalize on the explosive demand for battery-grade lithium carbonate. The demand is being driven, in large part, by the paradigm shift from gas to hybrid/electric vehicles.
American Lithium claims to have 100% mineral rights to 16,000 acres comprising four claim blocks in Nevada's lithium-rich Montezuma Valley neighboring Clayton Valley in Esmeralda County and is currently in the process of assessing the size, quality and processing alternatives of its Lithium Brine Project. According to the company, early estimates put the valley's lithium deposits as high as 700 million kg, ranking it second only in size to the deposits found in Chile.
And why are we so excited about the prospects for lithium? Consider these reasons....
· The Obama administration's Energy and Environmental plan requires increased lithium production as well as the potential for government investment. Not only that, the plan calls for ONE MILLION hybrid cars on American roads by 2015, $150 billion investment in catalyzing private efforts to build clean energy sources, and a new $700 tax credit for buying advanced vehicles (in addition to any state incentives).
· Lithium prices are rising and should continue to rise (source: Marketoracle.com. Click to read article)
· According to the company, the worldwide market for rechargeable lithium batteries is estimated to be worth $4 billion/year. Those types of batteries are becoming the standard power device for consumer and industry devices including cell phones, computers, power tools, electric cars and energy storage. In fact, over 60% of mobile phones and 90% of laptop computer feature lithium ion batteries.
· It may play a vital role to the future of the automotive industry. In fact, AMLM has stated that the automotive market alone for Lithium batteries is projected to reach $337 million in 2012 and $1.6 billion in 2015.
And check this out!
AMLM is working on validating the worth of their claim with the recent announcement that Hasbrouck Consulting has been contracted to conduct a Gravity Survey of the recently acquired Montezuma Valley, Nevada lithium brine prospects.
Once the company has completed its Gravity Survey and electromagnetic (EM) survey, then the data collected from the field work will be transferred to laboratories in Prescott, Arizona for hydrology, geophysics and geochemistry analysis by Hasbrouck Consulting, resulting in the delineation of drill targets. Drilling will be contracted and scheduled after receiving the results of the initial work. To read the full article Click Here.
Did you know that just a couple of days ago there was a BIG LITHIUM BATTERY STOCK IPO (Initial Public Offering) under the symbol AONE? They are not a direct comp for AMLM since they are a battery manufacturer, but the interest in the stock tells us that Lithium will continue to be a "hot commodity"....literally.
AONE's management can be said to have great timing as their stock SURGED OVER 50% from the pre-IPO price on the day it went public.
We think the fundamental and technicals of AMLM could very well push the share price higher. But with the added visibility of a successful IPO in the same sector....who knows just where AMLM could go?
But if the trade works against us, members may wish to exit the position on a closing break of $1.05 as this would violate not only the 13 day moving average, but also its trendline. It could also set the stock up for a retest of the 50 day moving average currently at around 79 cents.
So find out everything you can on AMLM and add it to your radar right away. We are hopeful that this could be another exciting MOMENTUM PLAY where our members could "Buy High....and Sell Even Higher!"
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