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 4,500 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. Since we first called it on January 18 at $0.18, the stock spent a couple of weeks churning in the $0.16 to $0.20 range. 1.3 million warrants with a strike price of $0.18 were to expire on February 8. Given the extremely short time frame left to these warrants, it made sense that warrants holders would sell stock at $0.20 and lock in a couple of pennies profit by exercising them, rather than letting them expire. With these warrants likely exercised and in the rear view mirror, the overhang of shares is no longer an issue. With GBML having broken out above $0.20 over the past couple of days, we think it's perfectly set up to go on a run in a similar way to NILI. The stock closed today at $0.22, the highest close it's had since we first wrote about it.
We think that GBML has great potential to become the next big lithium junior after announcing outstanding sample grades of lithium in their large property in Ireland. 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). We initially considered GBML to have potential to be the next NILI or PMET, but after further research on its two lithium properties and interviews from the CEO, we think it has potential to be the next NILI and PMET. At a $15 million market cap, GBML is an absolute steal. We are up to 1,014 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 118 followers so far on here. You can also follow us on Twitter @StockTradePicks which has over 5,000 followers.
Why do we say that GBML has the potential to be the next NILI and PMET? Simple, the company is actively drilling in two properties that share characteristics to the main properties for each of these stocks. The Lithium King Project in Utah and the North-West Leinster Lithium Project in Ireland which is where the high grade samples were taken. GBML's CEO Michael Murphy has been active in getting the word out on these sample results as well as near term drilling plans for both properties. Click here to view the interview conducted by Penny Queen or watch it below. While there is speculation potential over the near-term drilling plans, shareholders can also be assured that Murphy confirmed that he was offered and declined financings. Between the existing cash balance and warrant exercises, the company has enough cash to fund these programs.
First we'll talk about the Lithium King Project in Utah. Ourselves and other NILI investors have made a point about NILI's Nevada North Project being in reasonably close proximity to Thacker Pass. But also far away enough in an unexplored region that it has unknown and untapped upside potential. When looking at a map, we see that GBML's Lithium King is actually much closer to Nevada North than Thacker Pass is:
So when we are talking about NILI's resource and how it may be the best new find there is, especially relative to its market cap, there is a decent chance that Lithium King will have similar kind of results. Murphy stated that historical USGS logs had samples as high as 1,200 ppm lithium starting 10 meters deep. This is similar depth as NILI's findings, though on the lower end of NILI's grade range. Murphy spoke well of Utah's Bureau of Land Management and expects drilling to be able to start in several weeks. The expectation is to drill down to 1,000 meters on the property, so we will see if grades improve as they so often do with many of the Nevada projects once you dig down below 100 meters.
GBML's North-West Leinster Lithium Project in Ireland exhibits traits similar to PMET's Corvette Property in Quebec, with sample sizes up to 3.75% Li2O or 17,410 ppm. The news from a few weeks ago:
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_ID | Program | Li_ppm | Li2O%* |
| AES63003 | Follow Up Sampling Dec 2022 | 17,410 | 3.75 |
| AES63033 | Follow Up Sampling Dec 2022 | 16,860 | 3.63 |
| AES63519 | Follow Up Sampling Dec 2022 | 13,160 | 2.83 |
| AES63015 | Follow Up Sampling Dec 2022 | 13,050 | 2.81 |
| AES63029 | Follow Up Sampling Dec 2022 | 12,920 | 2.78 |
| AES63042 | Follow Up Sampling Dec 2022 | 12,580 | 2.71 |
| AES63014 | Follow Up Sampling Dec 2022 | 12,200 | 2.63 |
| AES63021 | Follow Up Sampling Dec 2022 | 12,040 | 2.59 |
| AES63018 | Follow Up Sampling Dec 2022 | 11,980 | 2.58 |
| AES63011 | Follow Up Sampling Dec 2022 | 11,820 | 2.54 |
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).
| Prospect | Program | No |
| Carriglead | Recon Sampling July 2022 | 2 |
| Knockeen | Recon Sampling July 2022 | 4 |
| Prospect | DD Sampling July 2022 | No |
| Carriglead | Follow Up Sampling Dec 2022 | 10 |
| Knockeen | Follow Up Sampling Dec 2022 | 56 |
| Prospect | Program | No |
| Carriglead | Total | 12 |
| Knockeen | Total | 60 |
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_ID | Program | Li_ppm | Li2O_%* | Prospect |
| 210724CL05 | Recon Sampling July 2022 | 13,700 | 2.95 | Knockeen |
| 210724CL03 | Recon Sampling July 2022 | 11,200 | 2.41 | Knockeen |
| 210724CL04 | Recon Sampling July 2022 | 11,000 | 2.37 | Knockeen |
| 210724CL02 | Recon Sampling July 2022 | 3,240 | 0.70 | Knockeen |
| AES61138 | Recon Sampling July 2022 | 7,470 | 1.61 | Carriglead |
| AES61137 | Recon Sampling July 2022 | 3,550 | 0.76 | Carriglead |
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.
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
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
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
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_ID | Program | Li_ppm | Li2O%* | Prospect |
| AES63003 | Follow Up Sampling Dec 2022 | 17,410 | 3.75 | Knockeen |
| AES63033 | Follow Up Sampling Dec 2022 | 16,860 | 3.63 | Knockeen |
| AES63519 | Follow Up Sampling Dec 2022 | 13,160 | 2.83 | Knockeen |
| AES63015 | Follow Up Sampling Dec 2022 | 13,050 | 2.81 | Knockeen |
| AES63029 | Follow Up Sampling Dec 2022 | 12,920 | 2.78 | Knockeen |
| AES63042 | Follow Up Sampling Dec 2022 | 12,580 | 2.71 | Knockeen |
| AES63014 | Follow Up Sampling Dec 2022 | 12,200 | 2.63 | Knockeen |
| AES63021 | Follow Up Sampling Dec 2022 | 12,040 | 2.59 | Knockeen |
| AES63018 | Follow Up Sampling Dec 2022 | 11,980 | 2.58 | Knockeen |
| AES63011 | Follow Up Sampling Dec 2022 | 11,820 | 2.54 | Knockeen |
| AES63023 | Follow Up Sampling Dec 2022 | 11,620 | 2.50 | Knockeen |
| AES63028 | Follow Up Sampling Dec 2022 | 11,580 | 2.49 | Knockeen |
| AES63041 | Follow Up Sampling Dec 2022 | 11,570 | 2.49 | Knockeen |
| AES63037 | Follow Up Sampling Dec 2022 | 11,510 | 2.48 | Knockeen |
| AES63016 | Follow Up Sampling Dec 2022 | 11,460 | 2.47 | Knockeen |
| AES63044 | Follow Up Sampling Dec 2022 | 11,340 | 2.44 | Knockeen |
| AES63012 | Follow Up Sampling Dec 2022 | 11,180 | 2.41 | Knockeen |
| AES63008 | Follow Up Sampling Dec 2022 | 9,920 | 2.14 | Knockeen |
| AES63048 | Follow Up Sampling Dec 2022 | 9,520 | 2.05 | Knockeen |
| AES63043 | Follow Up Sampling Dec 2022 | 9,360 | 2.02 | Knockeen |
| AES63027 | Follow Up Sampling Dec 2022 | 8,820 | 1.90 | Knockeen |
| AES63046 | Follow Up Sampling Dec 2022 | 8,790 | 1.89 | Knockeen |
| AES63516 | Follow Up Sampling Dec 2022 | 8,370 | 1.80 | Knockeen |
| AES63036 | Follow Up Sampling Dec 2022 | 8,300 | 1.79 | Knockeen |
| AES63007 | Follow Up Sampling Dec 2022 | 8,090 | 1.74 | Knockeen |
| AES63026 | Follow Up Sampling Dec 2022 | 8,030 | 1.73 | Knockeen |
| AES63010 | Follow Up Sampling Dec 2022 | 7,890 | 1.70 | Knockeen |
| AES63517 | Follow Up Sampling Dec 2022 | 7,910 | 1.70 | Knockeen |
| AES63512 | Follow Up Sampling Dec 2022 | 7,840 | 1.69 | Knockeen |
| AES63017 | Follow Up Sampling Dec 2022 | 7,550 | 1.63 | Knockeen |
| AES63520 | Follow Up Sampling Dec 2022 | 7,370 | 1.59 | Knockeen |
| AES63049 | Follow Up Sampling Dec 2022 | 7,100 | 1.53 | Knockeen |
| AES63515 | Follow Up Sampling Dec 2022 | 7,040 | 1.52 | Knockeen |
| AES63024 | Follow Up Sampling Dec 2022 | 6,190 | 1.33 | Knockeen |
| AES63031 | Follow Up Sampling Dec 2022 | 6,140 | 1.32 | Knockeen |
| AES63013 | Follow Up Sampling Dec 2022 | 5,720 | 1.23 | Knockeen |
| AES63019 | Follow Up Sampling Dec 2022 | 5,420 | 1.17 | Knockeen |
| AES63030 | Follow Up Sampling Dec 2022 | 5,300 | 1.14 | Knockeen |
| AES63034 | Follow Up Sampling Dec 2022 | 4,960 | 1.07 | Knockeen |
| AES63039 | Follow Up Sampling Dec 2022 | 4,790 | 1.03 | Knockeen |
| AES63022 | Follow Up Sampling Dec 2022 | 4,710 | 1.01 | Knockeen |
| AES63514 | Follow Up Sampling Dec 2022 | 4,300 | 0.93 | Knockeen |
| AES63045 | Follow Up Sampling Dec 2022 | 4,290 | 0.92 | Knockeen |
| AES63025 | Follow Up Sampling Dec 2022 | 3,940 | 0.85 | Knockeen |
| AES63032 | Follow Up Sampling Dec 2022 | 3,550 | 0.76 | Knockeen |
| AES63035 | Follow Up Sampling Dec 2022 | 2,680 | 0.58 | Knockeen |
| AES63009 | Follow Up Sampling Dec 2022 | 1,920 | 0.41 | Knockeen |
| AES63047 | Follow Up Sampling Dec 2022 | 1,480 | 0.32 | Knockeen |
| AES63038 | Follow Up Sampling Dec 2022 | 450 | 0.10 | Knockeen |
| AES63001 | Follow Up Sampling Dec 2022 | 120 | 0.03 | Knockeen |
| AES63002 | Follow Up Sampling Dec 2022 | 120 | 0.03 | Knockeen |
| AES63004 | Follow Up Sampling Dec 2022 | 120 | 0.03 | Knockeen |
| AES63005 | Follow Up Sampling Dec 2022 | 130 | 0.03 | Knockeen |
| AES63513 | Follow Up Sampling Dec 2022 | 100 | 0.02 | Knockeen |
| AES63518 | Follow Up Sampling Dec 2022 | 80 | 0.02 | Knockeen |
| AES63006 | Follow Up Sampling Dec 2022 | 60 | 0.01 | Knockeen |
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 a previous interview with GBML's CEO Michael Murphy, he reiterated that the company has 16 licenses covering 65,000 hectares and that the samples in this news release were from one license. In another interview, he stated that the company believes it has identified the dike from which the samples are coming. The dike starts at a depth of two meters, so the access is easy and the cost to drill will be low. Drilling will also start on this property during Q1.
While the sample grades show up to 3.75% which is comparable to PMET, the company still needs to prove depth and length through actual drilling. PMET is seeing these types of grades over 100 meters, which is a far cry from samples. But the opportunity remains there. PMET has around a $1.5 billion market cap versus GBML at just $15 million. Is it worth it to speculate on GBML at 1% of PMET's valuation? We think that it's a fair risk to reward trade-off.
A lot of focus has been on building the EV supply chain in the Americas, that's why places like South America, Nevada and Quebec have been so hot when it comes to lithium. The Europeans are doing the same thing. So if GBML's property in Ireland does indeed confirm the existence of lithium, it will be ideally located for that.
When analyzing GBML's near-term trading potential, we can use NILI as 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. GBML has a pretty tight share structure with only 68 million shares outstanding. Inclusive of the likely fully exercised expiring set of warrants, that count will still be less than 70 million. The CEO has claimed that he is turning away recent financing offers so we don't expect any further overhang on the stock price. The combination of being in a hot lithium industry, having not one but two places to drill and no need to dilute any time soon, we think GBML is in an ideal position to go on a run.
Disclosure: We are long GBML.V
