April 1, 2022
Noram Lithium Corp. (TSXV:NRM, Not Rated, Koby Kushner) reported that it has encountered near-surface visual mineralization in hole CVZ-70 of the Phase VI infill drilling program at its 100%-owned Zeus lithium clay project in Nevada. Visual inspection of the core identified a ~116m interval of potentially lithium-rich clays that starts near surface. This is one of the thickest claystone intersections recorded at the project, rivaling hole CVZ-62 from Phase V drilling, which returned a ~116m claystone interval as well. While assays remain pending, we note that this hole was drilled in an area that previously lacked drill density, which we expect to bode well for upgrading the current resource. CVZ-70 is the first of the 12-hole Phase VI infill drill program at Zeus which aims to expand the M&I resource. Zeus currently has ~1.8Mt LCE M&I, and ~3.9Mt LCE inferred resources and Noram plans to upgrade ~20% of the inferred resources to indicated ahead of the PFS by year-end. An increase in M&I resources should benefit the upcoming PFS, as only M&I and not inferred resources are allowed for inclusion in such a study. We highlight that the 2021 PEA only used ~20% of the resource tonnage to obtain a 40-year LOM, with robust post-tax economics, outlining an NPV of ~US$1.3B and 31% IRR, assuming lithium prices of US$9,500/t LCE. With a market cap of ~4% of NPV, we believe Noram is significantly undervalued and has quietly flown under the radar amidst a heated Li market, as we highlighted in our introduction note. The company remains fully funded to pursue work on a PFS after its recent US$14M funding from LRC and Waratah, which included US$5M of royalty and US$9M of equity financing (read more). Read more
