Resource World Magazine

J U N E / J U L Y 2 0 1 6 www.resourceworld.com 19 Nevada comes from large open pit min- ing using cyanide heap leaching recovery. Total gold production in Nevada from 1835 to 2008 totaled 152,000,000 troy ounces. In 2014, the Battle Born state pro- duced 4,940,540 ounces representing 73% of gold produced in the US and 6% of the world's production. The town of Silver Peak, in Nevada's Clayton Valley was founded in 1864 after silver was discovered nearby making it one of the state's oldest mining commu- nities. Today, it is home to Albemarle Corp.'s [ALB-NYSE] Silver Peak Mine, the only lithium brine operation in North America. The mine has been in production since 1966. When Tesla Motors [TSLA-NYSE] announced that it would build a massive lithium-ion battery gigafactory in Nevada, there was a renewed interest in lithium exploration, particularly in the Clayton Valley where a number of important geo- logical and climatic factors are present such as a closed, tectonically active basin flanked by lithium-bearing source rocks, an arid climate and elevated heat flow due to hot springs or young volcanoes. Such notable juniors to stake ground in the immediate area of the Silver Peak mine are: Pure Energy [PE-TSXV] the only com- pany so far to complete a resource estimate on their Clayton Valley Project and who have secured a conditional agreement with Tesla; Lithium X Energy [LIX-TSXV]; and Nevada Sunrise Gold [NEV-TSXV]. The Lida Valley, 60 km south of Tonopah, is another potential lithium dis- covery area with the right combination of elements including strong, recently obtained satellite imagery, showing the presence of lithium bearing clays leach- ing from the surrounding ranges into the valley basins below. Strategically located is the Gemini property shared by Nevada Sunrise and Eureka Resources [EUK-TSXV]. Goldman Sachs recently called lithium the "new gasoline". The Economist calls it "the world's hottest commodity". They talk about a global scramble to secure supplies of lithium by the world's largest battery producers, and by end-users such as carmakers. Even Apple, Google and start up Faraday Future all have plans for electric cars. Nevada has become ground zero in the race to find enough lithium to feed the growing demand. As a result, the next few years promises to be another his- toric era for mining in Nevada. Gold exploration continues in Nevada. Viscount Mining [VML-TSXV; VLMGF- OTCQB] has started its 2016 work program on the Cherry Creek property 90 km north of Ely. The program is being conducted by Sumitomo Corp. which can earn a 75% interest. This program follows up on the successful 2015 work program in the Flint Canyon area. n The above article was written by Barry Muir who is a registered Investment Adviser with Haywood Securities Inc. a Canadian based independent, full‐service investment firm and member of the Canadian Investor Protection Fund. The article is for informational purposes only and is neither a solicitation for the pur- chase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. The information contained in the reports have been compiled from sources Haywood believes are reliable; however, Haywood makes no guarantee, representation or warranty, expressed or implied, as to such information's accuracy or completeness. The views expressed are those of the author and not necessarily Haywood Securities Inc. All opinions and estimates contained in the reports are based on assumptions the author believes to be rea- sonable as of the dates of the reports but are subject to change without notice. Either the author, Haywood Securities Inc. or its employ- ees may from time to time hold or transact in the securities mentioned. Barry can be reached at (604) 697-6172 or bmuir@haywood.com

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