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Noram Ventures Inc (2)
Symbol NRM
Shares Issued 43,481,802
Close 2020-07-22 C$ 0.175
Market Cap C$ 7,609,315
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Noram talks lithium supply, demand in developing Zeus

2020-07-23 02:06 ET - News Release

Dr. C. Tucker Barrie reports

NORAM REVIEWS GLOBAL LITHIUM SUPPLY AND DEMAND AS CONTEXT FOR DEVELOPING THE ZEUS LITHIUM CLAYSTONE DEPOSIT

Ahead of Noram Ventures Inc.'s drill campaign and engineering/economic studies in third quarter/fourth quarter 2020, management is summarizing the current environment for global lithium supply and demand. Noram's Zeus lithium claystone deposit has, at a 900-part-per-million-lithium cut-off, 124 million tonnes at 1,136 ppm lithium as indicated resources and 77 million tonnes lithium at 1,045 ppm lithium as inferred resources (750,000 and 430,000 tonnes lithium carbonate equivalent (LCE), respectively; see Noram press release dated Feb. 5, 2020, and the Peek and Barrie, 2019, National Instrument 43-101 report on the Zeus lithium claystone deposit). The deposit is at surface and to a depth of 60 to 100 metres in unlithified claystone material. There are over two square kilometres of fertile ground yet to be drill tested on the Zeus property.

Lithium supply: Global lithium resources are present in brine, pegmatite and claystone deposits. In 2019, there were only 12 lithium operations of significance globally. The U.S. Geological Survey reported: "Six mineral operations in Australia, two brine operations each in Argentina and Chile, and one brine and one mineral operation in China accounted for the majority of world lithium production. Owing to overproduction and decreased prices, several established lithium operations postponed capacity expansion plans. Junior mining operations in Australia, Canada and Namibia ceased production altogether."

In North America, the sole lithium producer is Albemarle's Silver Peak brine operations, which have been in production for over 60 years (approximately 3,500 tonnes lithium carbonate equivalent produced in 2019). Silver Peak is surrounded by a number of lithium claystone deposits that are poised for expansion and development, including Noram's Zeus project, Cypress Development's TLC project, Ioneer's Rhyolite Ridge project and American Lithium's TLC project. Two other lithium claystone deposits of significance are in the cordillera of the United States and Mexico: Lithium America's Thacker Pass project and Bacanora's Sonora project.

Lithium demand: The USGS estimated that global end use markets for lithium in 2019 are as follows: batteries 65 per cent, ceramics and glass 18 per cent, lubricating greases 5 per cent, polymer production 3 per cent, continuous casting mould flux powders 3 per cent, air treatment 1 per cent, and other uses 5 per cent. Global lithium consumption in 2019 was estimated to be 57,700 lithium metal or 307,000 tonnes LCE.

Rodney Hooper, a global lithium expert stated: "Lithium demand from batteries is set to grow to greater than 800,000 tonnes LCE by 2025 from a base of approximately 190,000 tonnes LCE in 2019. The majority of that growth will be driven by electric vehicles (EV) powered by Tier 1 batteries with long-dated warranties."

Mr. Hooper continued, "Unexpected EV under demand in 2019/2020 has resulted in oversupply; however, through a combination of government incentives, penalties and model launches in key auto segments, 2021 and 2022 should deliver unprecedented demand growth."

C. Tucker Barrie, president and chief executive officer of Noram Ventures, commented: "Experts like Ronald Hooper concur with the major banks (for example, J.P. Morgan, Deutchebank, Goldman Sachs, others) that the global lithium demand is effectively controlled by the demand for electric vehicles and that the demand for EVs will increase threefold in the next five years. Although there is spare production capacity in the larger lithium sources, it appears that in late 2022 to early 2023, the supply will not meet this rapidly increasing demand, and this high demand will only increase in the following decade.

"Tesla alone plans to produce approximately 400,000 electric vehicles this year, and aims to produce greater than two million electric vehicles in 2025. Each electric vehicle battery pack uses approximately 50 to 80 kg lithium carbonate equivalent. There are 10 other major auto producers ramping up production for electric vehicles globally. We look forward to further exploration and development of our Zeus lithium claystone deposit in Nevada."

The technical information contained in this news release has been reviewed and approved by C. Tucker Barrie, PhD, PGeo, who is a qualified person with respect to Noram's Clayton Valley lithium project as defined under National Instrument 43-101.

About Noram Ventures Inc.

Noram is a Canadian-based junior exploration company, with a goal of developing lithium deposits and becoming a low-cost supplier. The company's primary business focus since formation has been the exploration of mineral projects. Noram's long-term strategy is to build a multinational lithium mineral company to produce and sell lithium into the markets of Europe, North America and Asia.

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