Wednesday 18 January 2023

GBML: The Next NILI? Or PMET?

Back on October 21, we first announced our bullish call on Surge Battery Metals Inc. (NILI.V) (NILIF) when it was $0.10. At the time it was based on samples within drill results that showed as high as 4500 ppm of lithium in 5 foot intervals. The stock stayed in the 10 cent range for a couple of weeks before rocketing up as high as $0.46 as the drill results started coming in and hype reached fever pitch. Global Battery Metals Ltd. (GBML.V)(REZZF) is in a very similar situation to NILI back a few months ago and we think that it has great potential to become the next big lithium runner after today's news of outstanding sample grades of lithium. Grades that are several times higher than NILI's and are closer to the type of grades seen from Patriot Battery Metals Inc. (PMET.V)(PMETF). GBML moved up 35% on the news but we think that this move was muted on a weak market day and expect swift upward movement on speculation due to its pending samples and drilling to take place in Q1. We are up to 1,012 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 116 followers so far on here. You can also follow us on Twitter @StockTradePicks which has over 5,000 followers.

The news from today

Highlights Include:

  • Of the 66 total surface samples analyzed, assay results show that 47 returned grades above 1% Li2O - with grades as high as 3.75% and 3.63% (source: ALS Laboratories, Loughrea, Ireland)
  • Knockeen and Carriglead Prospects are reported at:
    • Knockeen: Out of a total of 56 samples, 41 samples graded above 1% Li2O, of which 20 graded above 2% Li2O and of which two graded above 3% Li2O (Sample AES 63003 (3.63% Li2O) and Sample AES 63033 (3.75% Li2O))
    • Carriglead: out of a total of 10 samples, six samples graded above 1% Li2O, of which one sample analysed above 2% Li2O (Sample AES63504 (2.09% Li2O))
  • The program of intensive prospecting has consolidated the extent of the spodumene pegmatite boulder train at surface and significantly enhanced the resolution of the dispersion zone
  • The known extent of the boulder train is now over 1km in length from NE to SW, 0.5km from NW to SE and is still open in all directions at Knockeen

Vancouver, British Columbia--(Newsfile Corp. - January 18, 2023) - Global Battery Metals Ltd. (TSXV: GBML) (OTCQB: REZZF) (FSE: REZ) (the "Company" or "GBML"), a critical mineral exploration company focused on growth-oriented lithium and other battery metal projects, announces initial field exploration assay results (see Table 1) from its North-West Leinster Lithium Project (the "Property" or the "Project"), focused primarily on Prospecting Licence Area ("PLA") 1597 in Ireland.

Sampling Program Highlights

Sample_IDProgramLi_ppmLi2O%*
AES63003Follow Up Sampling Dec 202217,4103.75
AES63033Follow Up Sampling Dec 202216,8603.63
AES63519Follow Up Sampling Dec 202213,1602.83
AES63015Follow Up Sampling Dec 202213,0502.81
AES63029Follow Up Sampling Dec 202212,9202.78
AES63042Follow Up Sampling Dec 202212,5802.71
AES63014Follow Up Sampling Dec 202212,2002.63
AES63021Follow Up Sampling Dec 202212,0402.59
AES63018Follow Up Sampling Dec 202211,9802.58
AES63011Follow Up Sampling Dec 202211,8202.54

 

Table 1: Highlight results from the prospecting program (December 2022)
* Li2O % = Li ppm % (x 2.153)

A full list of comprehensive results can be found in Appendix 1.

"The high-grade assay results from our most recent surface sampling program are extremely encouraging and reassure our early diligence in the Project," said Michael Murphy, Chief Executive Officer of GBML. "The strong concentration of confirmed lithium-bearing pegmatites is helping the team target the source and plan a strong drilling campaign to test the limits of the Property. We look forward to receiving our overburden assay results."

Field Exploration Program Update

PLA 1597 forms part of the Company's Property exploration block, which is operated under an exclusive Option and Earn-in agreement with Technology Minerals Plc, the first-listed UK company focused on creating a sustainable circular economy for battery metals, and its wholly owned subsidiary LRH Resources Limited ("LRH").

The current phase of detailed exploration work is centred on an area where a forty-year-old historical company report1 described a trench excavated at Knockeen Townlands on PLA 1597 (Figure 1) which, uncovered in bedrock, exposed a 1.8m wide spodumene-bearing pegmatite vein. However no detailed laboratory assays or geological maps of the trench were reported at that time. Historical prospecting around the trench also reported the occurrence of up to 10 large boulders of spodumene bearing pegmatite at surface.

The current exploration program carried out under LRH management by Aurum Exploration Services Limited included an initial reconnaissance visit in July 2022 totalling six samples. This was followed by a more detailed prospecting and lithogeochemical survey on two areas at Knockeen and Carriglead Townlands in December 2022 and totalling 66 samples (Figure 1 and Table 2).

ProspectProgramNo
CarrigleadRecon Sampling July 20222
KnockeenRecon Sampling July 20224



ProspectDD Sampling July 2022No
CarrigleadFollow Up Sampling Dec 202210
KnockeenFollow Up Sampling Dec 202256



ProspectProgramNo
CarrigleadTotal12
KnockeenTotal60

 

Table 2: Results from reconnaissance prospecting (July 2022 and December 2022)

Preliminary Reconnaissance July 2022

Two areas at Knockeen and Carriglead Townlands were targeted with an initial reconnaissance visit in July 2022, during which six samples - four at Knockeen and two at Carriglead - were collected. Analytical results confirmed the presence of the historically reported spodumene pegmatite boulder train and returned very significant grades of Li2O in all the samples. These results have been reported previously but are reproduced here for continuity (Table 3).

Sample_IDProgramLi_ppmLi2O_%*Prospect
210724CL05Recon Sampling July 202213,7002.95Knockeen
210724CL03Recon Sampling July 202211,2002.41Knockeen
210724CL04Recon Sampling July 202211,0002.37Knockeen
210724CL02Recon Sampling July 20223,2400.70Knockeen
AES61138Recon Sampling July 20227,4701.61Carriglead
AES61137Recon Sampling July 20223,5500.76Carriglead

 

Table 3: Results from reconnaissance prospecting (July 2022)
* Li2O % = Li ppm % (x 2.153)

December 2022 Detailed Prospecting and Lithogeochemistry

In December 2022 an extensive prospecting and lithogeochemistry survey was completed covering the two areas identified during the reconnaissance program. A total of 56 samples were collected at Knockeen and 10 at Carriglead. The results were highly encouraging with coherent boulder trains of spodumene bearing lithium pegmatites mapped out across the prospects. The highlight sample results are shown in Table 1 and the full results are appended in Appendix 1 to this release in Tables and 4 and 5 with associated maps showing the locations in Figures 2 (Knockeen) and Figures 3 (Carriglead) below.

Cannot view this image? Visit: https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_001.jpg

Figure 1: Location of the Knockeen and Carriglead target areas PL 1597 showing sample locations

To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_001full.jpg

Cannot view this image? Visit: https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_002.jpg

Figure 2: Location of samples and assay results from the Knockeen target area

To view an enhanced version of Figure 2, please visit:
https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_002full.jpg

Cannot view this image? Visit: https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_003.jpg

Figure 3: Location of samples and assay results from the Carriglead target area

To view an enhanced version of Figure 3, please visit:
https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_003full.jpg

Cannot view this image? Visit: https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_004.jpg

Photo 1: Spodumene pegmatite samples from Knockeen and Carriglead

To view an enhanced version of Photo 1, please visit:
https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_004full.jpg

Please see the Company's NW Leinster Project Overview for additional program details, in addition to the latest version of the Company's Investor Presentation available for download from the GBML website (www.gbml.ca).

Appendix 1: Analytical Results

Sample_IDProgramLi_ppmLi2O%*Prospect
AES63003Follow Up Sampling Dec 202217,4103.75Knockeen
AES63033Follow Up Sampling Dec 202216,8603.63Knockeen
AES63519Follow Up Sampling Dec 202213,1602.83Knockeen
AES63015Follow Up Sampling Dec 202213,0502.81Knockeen
AES63029Follow Up Sampling Dec 202212,9202.78Knockeen
AES63042Follow Up Sampling Dec 202212,5802.71Knockeen
AES63014Follow Up Sampling Dec 202212,2002.63Knockeen
AES63021Follow Up Sampling Dec 202212,0402.59Knockeen
AES63018Follow Up Sampling Dec 202211,9802.58Knockeen
AES63011Follow Up Sampling Dec 202211,8202.54Knockeen
AES63023Follow Up Sampling Dec 202211,6202.50Knockeen
AES63028Follow Up Sampling Dec 202211,5802.49Knockeen
AES63041Follow Up Sampling Dec 202211,5702.49Knockeen
AES63037Follow Up Sampling Dec 202211,5102.48Knockeen
AES63016Follow Up Sampling Dec 202211,4602.47Knockeen
AES63044Follow Up Sampling Dec 202211,3402.44Knockeen
AES63012Follow Up Sampling Dec 202211,1802.41Knockeen
AES63008Follow Up Sampling Dec 20229,9202.14Knockeen
AES63048Follow Up Sampling Dec 20229,5202.05Knockeen
AES63043Follow Up Sampling Dec 20229,3602.02Knockeen
AES63027Follow Up Sampling Dec 20228,8201.90Knockeen
AES63046Follow Up Sampling Dec 20228,7901.89Knockeen
AES63516Follow Up Sampling Dec 20228,3701.80Knockeen
AES63036Follow Up Sampling Dec 20228,3001.79Knockeen
AES63007Follow Up Sampling Dec 20228,0901.74Knockeen
AES63026Follow Up Sampling Dec 20228,0301.73Knockeen
AES63010Follow Up Sampling Dec 20227,8901.70Knockeen
AES63517Follow Up Sampling Dec 20227,9101.70Knockeen
AES63512Follow Up Sampling Dec 20227,8401.69Knockeen
AES63017Follow Up Sampling Dec 20227,5501.63Knockeen
AES63520Follow Up Sampling Dec 20227,3701.59Knockeen
AES63049Follow Up Sampling Dec 20227,1001.53Knockeen
AES63515Follow Up Sampling Dec 20227,0401.52Knockeen
AES63024Follow Up Sampling Dec 20226,1901.33Knockeen
AES63031Follow Up Sampling Dec 20226,1401.32Knockeen
AES63013Follow Up Sampling Dec 20225,7201.23Knockeen
AES63019Follow Up Sampling Dec 20225,4201.17Knockeen
AES63030Follow Up Sampling Dec 20225,3001.14Knockeen
AES63034Follow Up Sampling Dec 20224,9601.07Knockeen
AES63039Follow Up Sampling Dec 20224,7901.03Knockeen
AES63022Follow Up Sampling Dec 20224,7101.01Knockeen
AES63514Follow Up Sampling Dec 20224,3000.93Knockeen
AES63045Follow Up Sampling Dec 20224,2900.92Knockeen
AES63025Follow Up Sampling Dec 20223,9400.85Knockeen
AES63032Follow Up Sampling Dec 20223,5500.76Knockeen
AES63035Follow Up Sampling Dec 20222,6800.58Knockeen
AES63009Follow Up Sampling Dec 20221,9200.41Knockeen
AES63047Follow Up Sampling Dec 20221,4800.32Knockeen
AES63038Follow Up Sampling Dec 20224500.10Knockeen
AES63001Follow Up Sampling Dec 20221200.03Knockeen
AES63002Follow Up Sampling Dec 20221200.03Knockeen
AES63004Follow Up Sampling Dec 20221200.03Knockeen
AES63005Follow Up Sampling Dec 20221300.03Knockeen
AES63513Follow Up Sampling Dec 20221000.02Knockeen
AES63518Follow Up Sampling Dec 2022800.02Knockeen
AES63006Follow Up Sampling Dec 2022600.01Knockeen

Lithium mining and exploration is well underway in South America, Nevada and Quebec, but looking for lithium in Ireland is a relatively new play. That's what could make GBML's North-West Leinster Lithium Property - and by extension its stock -  so special. In an interview with GBML's CEO Michael Murphy, he reiterated that the company has 16 licenses covering 65,000 hectares and that the samples in today's news release were from one license. Drilling is expected to be completed by the end of the first quarter with assays pending on some of the other licenses. 

Appendix 1 shows all 56 samples at Knockeen. Starting as high as 17,410 ppm, that's three times the best of NILI's initial sample results. NILI's highest grade so far has been around 5,000 ppm, which the bulk of the GBML's samples surpass. We are not at all trying to downplay NILI's results, which are significant and worth a market cap higher than its current market cap of $25 million. Instead, we are trying to say that GBML's market cap of $12 million represents an opportunity at least as lucrative as NILI's back when it was trading that low in October. What GBML needs to do next is prove depth through actual drilling, and the company is wasting no time in doing so. 

The beautiful thing with NILI when analyzing GBML's potential is that we have a recent example of a lithium stock with a similar market cap, similar news and similar speculative potential on pending drill results to try to predict where GBML is headed. We expect the stock price to move up at least a double from here and likely more in the coming weeks in a similar fashion to NILI. It might take a few days of churning in the 15-20 cent range like NILI did around 10 cents. Or maybe GBML will move immediately since it has a smaller float of 68 million shares. The company did do a financing at $0.10 in September which recently came off of its hold period, but this recent $1.2 million raise also likely means there won't be any additional raises in the near future, unless the stock price is significantly higher. 

While NILI is the near term comparable, these types of samples GBML are announcing are a lot more similar in nature to PMET. PMET is seeing these types of results over 100 meters, which is a far cry from samples. But the opportunity remains there. For a $12 million market cap, GBML is well worth the risk in our opinion. For perspective, PMET closed today at a $734 million market cap. GBML is 62 times cheaper than that. 

Disclosure: We are long GBML.V