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Junior Miner Signs LOI For High Grade Lithium Property, Shares Hit 52 Week High
By: AllPennyStocks.com News
September 9, 2009
As a substance drawn from the earth, it may not be as sexy as gold, nor a girl’s best friend, as diamonds are, but lithium is important for powering the devices of the electronic age. Lithium ion batteries are a hot commodity for use in hybrid cars, set to flood the market as an alternative to the gas guzzlers that have ruled the roads for decades. Lithium is also handy as an additive in the making of glass, ceramics, greases, as well as specialized uses in the aerospace, nuclear and medical fields.
A small cap junior mining company with a bead on this valuable stuff is Gander, Newfoundland-based Golden Dory Resources Ltd. (TSX-Venture:GDR), and the area in question is northwestern Ontario’s Red Lake Mining District, about 90 kilometres north of the town of Sioux Lookout, turf known better for its rich gold deposits. Golden Dory announced the day after Labour Day that it had acquired a 100% interest in a high-grade lithium oxide (Li2O) property in Red Lake, and that it was doing its due diligence on the property right away.
The find, worked on since the 1950s, has reportedly produced sample results on more than nine metres grading 3% Li2O, with grab sample results assaying up to 5.91% Li2O. Comparisons with other lithium projects are very favourable. Halifax-based Linear Metals Corporation (TSX:LRM) has recently announced historic drill results which include 16.90 metres grading 2.08% Li2O from one zone, and 9.08 metres grading 1.26% Li2O from another, on its Seymour Lake project, on Lake Nipigon, also in northwestern Ontario.
GDR is a newly formed public company focused on acquiring, exploring and joint venturing mineral exploration properties in Newfoundland and Labrador. Its three key projects on “the Rock” include the Burin (home to gold, uranium, molybdenum, zinc, copper, bismuth), Brady/Huxter Lane and Little Rattling Brook (gold finds). Conceived by professional prospectors with years of experience in eastern Canada, a diverse portfolio of properties has been built. The company has also gotten in on the ground floor with developing the Pequop Gold district in Nevada, and exciting things are looked for in that part of North America.
News of the lithium find up in Ontario’s northwest sent the company’s stock price, well, north, to a 52-week high of 15 cents, just more than six months after sinking to a gulch of 3.5 cents in the dog days of February, when markets big and small were wondering which end was up, let alone how to get there. At the time of publishing, the stock was traded at 12.5 cents. It’s believed lithium could give GDR another weapon in its arsenal of valuable commodities, and “spark” the company to the next level, taking bargain-smart investors with it.
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