Surge Battery Metals’ Post

Transcript

We're going to hear from Greg Raymer who's the presidency of Surge Battery Metals. What is Surge Battery Metals? Well, let me tell you, it's in the USA, it's in Nevada. The developing a very high grade lithium claystone project. So I think the timing after that presentation was pretty darn good. But a little bit about Greg, he served as an executive of one of the largest Canadian utilities. And also had a lot of senior roles in British Columbia in the government, senior government. He was executive vice president of transmission and distribution for Hydrant, British Columbia's hydroelectricity utility, serving 4 million customers with five and a half billion in annual revenue. Now he's also served in government. I'm not gonna keep talking about him because I think his projects pretty exciting. So give him a very, very warm welcome, please. Let's just get on with it. Yeah, Right, right, right, right. Well, good afternoon. You know, a conference is like this. The, the thing that you really, really don't want to do is follow such a dynamic speaker as what was just before me. So I, I might not be the most dynamic speaker, but I've got a really dynamic project that I, and I've really dynamic company that I'd like to tell you about. So here's the standard disclaimer. And you know, what I've seen today with these disclaimers is they seem to get a lot longer and the font seems to get a little shorter and smaller. So there you go. So surge battery metals, we are a lithium Claystone deposit. We have a lithium Claystone deposit in northeastern Nevada. And here's our investor highlight schedule. And what differentiates us from anyone else is the grade of our deposit. We've got the highest grade lithium claystone deposits in the United States. And possibly yet to be confirmed the largest grade or the largest deposit. So we recently put our mineral resource estimate out and the first part of Q1 with 4.7 million tons of lithium carbonate equivalent at about 2900 parts per million, which included about 4.7 million tons at about 3200 parts per million. So to put that into context for you, all the other projects in Nevada in the United States range from perhaps about 800. Parts per million to 1500 parts per million, with the exception of one Thacker Pass, which is owned by a company called Lithium Americas, which is the biggest developing mine in the United States and they're at about 2400 parts per million. We've got a proven lithium team. Now. One of the things in, in lithium, in a relative sense, lithium is, is a new mineral. So if I wanted to get some expertise in gold, let's say lots of gold companies around here today, you know, I could put an ad in a newspaper or on LinkedIn or something and, you know, get 100 applications. But there's not a lot of people in the lithium business that have been there and done that. And we were fortunate enough to attract a team from Millennial Lithium who recently sold their project. Do Lithium Americas in Argentina for about 1/2 a billion dollars US. So it's great to have have those guys on our team and helping us out. We've moved our project along quite quickly. We've got our first assay results from our first drill program in January 2023 and we've moved along. We've had our mineral resource estimate this year and in Q1, as I said, we've made application for our exploration plan of operations, what's going to allow us to go from A5 acre disturbance to A-250 acre. Disturbance next year and and drill our project out. We've done a lot of network both last year and this year and we're focusing it more. We provide it. We developed a battery grade and excessive 99% purity just in our first pass and the network that we're done and we're we're our technical grade, pardon me and we're working on battery grade right now. We expect to file a preliminary economic assessment in about November of this year. We've been working with our engineers over the last two months on that process and it's it's going along quite well. Again, that exploration plan of operations coming up in in 2024. Proven management team. I talked about that in the summary. Key to this group, our Graham Harris, who's our capital markets guy, Ian Scarr who's our technical expert. And Vijay Mehta, who is a chemical engineer now. Lithium mining is all about mining for sure, but it's also about, you know, lithium processing and chemical engineering. Vijay Meta, if you wanna Google him, he's a world renowned expert in lithium processing and we're happy to have him on our team. So just to kind of show you where our project is, that map on the far right hand side, we're in the kind of northeast corner of Nevada. But 180 miles West of us is Lithium America's Thacker Pass project. That project, of course, if you if you've paid attention to lithium over the last little while, it's got about $600 million in funding from General Motors and about $2.3 billion pending funding from the US DOE. The map on the left is our claim area. And as you can see, we've got about 13,000 acres in Elko County and again are moving our project forward. Did 2022-2023 drill program, the areas in blue there are are the the results of that drill program and kind of the the area that our mental resource estimate has taken up. So while we had an average of about 32154 parts per million with those two programs or overall mineral resource estimates about thirty 3300. Again, mineral resource estimate came out and that is our resource area there published that in Q1 of 2024. As I said, 4.7 million tons at about 2900 parts per million. We've just completed our 2024 drill program. And you can see here in this map, we've got an 8 hole program results are off for for assay right now. And we're, we're waiting for those results. But the darker blue area is the area that covers our our current mineral resource estimate. And the lighter blue area is, is the, is the program from this year. And what you can see there, the contiguous area from the darker blue to the lighter blue is, will significantly expand our, our, our resource so. We've got you know a lot of observations and field testing done and what I can tell you about the the current program because we've not we've not received an announced any real results. But what I can tell you is, is that, that very, very similar to the drill results with the highest grade lithium in the United States that we've seen in the last two drill programs. Again, I talked about the the grade, our first pass we had 99% purity, which in the business is called technical grade and we're just going through the process now to achieve battery grade. Our view is on that of course is we are moving forward with kind of tried and true processes with VJ's leadership. Although within the next couple of years as we move through our process, we've got opportunities who to improve on that. So our key catalyst for 2024, I talked to you about the the metallurgical flow sheet. We're in our exploration programs now hoping to. Announce results in the next month or so and working hard on our preliminary economic assessment. Preliminary economic assessment is going to be a catalyst for us. We spent some time this afternoon with the with our engineers going over net present values and IR and all that stuff. And you know we're pretty confident in what we're going to see as a result that comes out of that. This just does a little bit of a comparison to other lithium clay deposits. Mostly in the United States with the exception of ********* project there in in Mexico. And as you can see while we are early stage, we're moving very quickly. But it's the grade, it's the grade, it's the grade. And that's what differentiates our project from any other project, including the Thacker Pass project that's been benefiting from so much government funding and OEM funding also. Inflation Reduction Act so. And my bio, they didn't talk too much about my history, but my history, I was a deputy minister of energy, mines and Petroleum Resources in in Canada and British Columbia. And I had responsibility for, you know, energy policy and all that kind of kind of good stuff. And So what the Biden administration has done here is taken a decision that says we don't want to be reliant on other jurisdictions, no matter who they are, for critical minerals such as lithium. And they've produced this inflation reduction. Act and what they're trying to do is develop a battery supply chain in the United States over the next several years. Smart policy decision from my perspective being an ex government guy. Not easy to do, but what they have done is provided incentive fund funding, starting from mining operations such as what they're doing with Lithium America's, all the way through the battery supply chain to credits to retail customers that are buying electric vehicles. And what we have here and how Surge fits into that is we are a made in America lithium. Project that'll provide lithium for EV S and other batteries in the United States when things like batteries that are supported by China or other jurisdictions that are not friendly to the United States don't qualify for funding and reimbursement of credits under the Inflation Reduction Act. Smart policy decision. Question on everybody's mind, of course, is we're in an election year. What's going to happen? What's going to happen when or if there's a change in administration? If there isn't, things will continue on. This administration will continue with what they're doing in terms of supporting the Inflation Reduction Act and developing, you know, the battery supply chain in the United States. I've talked to a lot of people, I've been to DC a lot. I've been to into government and around government for, for a long time. Kind of the view that I have and the view that most people have. And you can you can tell with pronouncements that that Mister Trump has made over time, he's going to focus on, on putting significant tariffs on China so that, you know, he can keep things in America competitive and develop things in America. And the only analogy that I have is is you know, when the Cold War was going on, we're all old enough to be and remember the Cold War. It didn't matter who was in office, whether it was a Democratic president or Republican president. They just didn't like Russia. And I think what we've got now, it doesn't matter who's in office, whether it's a Democratic president or Russian President. They just don't like China. And so we think we're in a good spot to capitalize on that. Here's some statistics about supply and to meet and and demand in terms of lithium and and electronic electric vehicles. You know, the lithium market's been tough the last year we've we've gone from a high and we're down into a low. And I was heartened by Rick's comments this morning when he said, you know, you gotta hang on to your investments for five years and at some point even when they're down 50%. You gotta hang on to them because you'll get that 10 bagger. He was talking about the 10 baggers that he has. Well, you know, our our stock went from, you know, around $0.20 Canadian to $1.50 Canadian and we're hovering around 40 to $0.50 right now. And so, you know, we're one of those stocks that he's talked about that there's a potential ten bagger here. But we're in a bit of a problem situation given the overall market right now. There's a lot of noise in the business in terms of what's happening with EV demand, you know, is it going down all that. Kind of stuff. Well, it's not year over year EV sales are increasing. While they may have been projected to increase by 70% and they're only increasing by 35%, but they're still increasing. So you know, we're we're pretty comfortable and pretty, pretty happy with what we're doing. Our view of course is we're just going to continue on and develop our project. We've got enough money to bring us through into 2025. And as the market continues to evolve and information comes out in terms of supply of of lithium and and EV sales that will be prepared to kind of continue on to that 10 bagger that that Rick talked about ESG something of course that's been talked a lot about with mining companies over time and. And you know, we are early stages exploration company, but nonetheless, we're, we're, we're committed to the environment, to the social part. We've already, you know, started to talk with the local tribes and talked to the communities and whatnot. So we're, we're a good community partner and we look forward to kind of partnering with the community further and building our project as we go ahead. Here are some of the organizations that that cover us. SCP is been with us for a couple of years. They've been the the first organization and one of the reasons while we're here that's that's covered us. Roth is has covered us core-mark Haywood. You can see them all all there. Share structure, all important to investors. I mean the bottom line right now is we're about a $65 million market cap company. We see ourselves as the best lithium asset in the United States. We're comparable to Thacker past who is currently a $1 billion market cap company was a $4 billion market cap company. They've suffered the same as us on the share price, so. Yeah, that surge battery metals and that's our Nevada N lithium project. Thank you very much.