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Scotch Creek Ventures Stock Jumps 39% Ahead Of Expected Updates From Nevada Lithium Exploration Projects (OTC Pink: SCVFF)
Shares of Scotch Creek Ventures (OTC Pink: SCVFF (CSE: SCV) are surging, increasing by over 39% since the start of the month. But the good news for those just hearing about this promising lithium exploration company is that it isn’t too late for an opportune investment. In fact, if anything, momentum is building, and several updates highlighting intensified development at SCVFF's mining-friendly Nevada project sites should keep things that way for the foreseeable future. (*share price on 11/15/22, 9:30am EST, Yahoo! Finance)
There's plenty to support that bullish assumption. And with the company potentially sitting on a trove of unearthed lithium, the bulls may do more than run; they might stampede. That's not an overzealous presumption, either. Proximity to historically proven reserves positions SCVFF well to capitalize on its own opportunity to sell lithium to clients needing to power products such as flashlights, automobiles, Mars Rover spacecraft, and everything in between and after. In other words, there's no shortage of demand for SCVFF's targeted revenue-generating initiatives now. And with global green and clean-energy initiatives in full force, tomorrow can be even better.
Scotch Creek Ventures is undoubtedly eager to take advantage of the market opportunity, providing several updates showing its transition onto the fast track to expedite exploration. Its most significant development is commencing its Phase I drill program on its 100% owned Highlands West Lithium Project ("Highlands"). It's big news because it can be a value driver of exponential propositions.
Drilling Into Proximity Proven Potential
Again, not an overly ambitious statement - primarily because SCVFF's Highlands project is directly adjacent to Albemarle's Silver Peak lithium mine, North America's most significant and only producing lithium operation. That puts SCVFF in the right neighborhood at the right time. But even better, recent geophysics results from the detailed gravity, seismic, and Hybrid-Source Audio-Magnetotellurics (HSAMT) surveys showed more than only proximity adding to the site’s potential. The report identified key subsurface features within the central area of the Highlands property, an important measure triggering SCVFF's decision to expand the Highlands claims by an additional 400 acres and design its phase one drill program. And they aren't expediting plans on blind ambition.
Quite the opposite is true since the locations owned and surveyed indicate a high likelihood of finding underground lithium treasure. Several reasons point to that presumption, including combined results of the comprehensive geophysical survey at Highlands showing a subsurface dominated by strongly layered basin-fill units. These highly prospective sedimentary rocks are interpreted as claystone, mudstones, and volcanic beds that have accumulated in a series of fault-bounded basins underlying the property. To those understanding mining languages, it's potentially excellent news -so good that it perpetuated SCVFF's first drill program at its Highlands lithium project.
The next few weeks may help develop expectations for how valuable this property can be. Scotch Creek management has already laid out near-term goals, primarily to intensify exploration within the Western portion of the Clayton Valley and drill a large diameter core through sequences of basin-fill stratigraphy. Once completed, the collected core and groundwater samples will be logged and assayed with the prospect of discovering a significant lithium deposit. Here's more excellent news from SCVFF's and investors' perspectives.
If SCVFF can show reserves, underground or unearthed, valuations for this junior exploration company can skyrocket. It's a case where sitting on lithium, even without excavating it, can instantly change SCVFF's fortunes. And with demand from the EV, green, and clean-energy sectors far outpacing supply, those fortunes won't recede anytime soon. In fact, as demand for lithium goes from red-hot to scorching, expecting lithium prices to benefit from seller's market pricing pressures is a long-term proposition. Moreover, if SCVFF can deliver as intended on its initial drills, it would likely find itself in a perfect storm of opportunity with the ability to engage strategic options from a position of strength.
That prospect is certainly on the table, with indicators leaning toward a bias of scoring a win from a drill program targeting lithium brine and claystone with six high-quality drill targets. The phase 1 drilling program will exploit three targets for an estimated 6,000 feet total. And that's just the initial drill.
Expediting To Monetize its Opportunities
If all goes according to plan, SCVFF can leverage plenty of other data supporting that Highland could be sheltering a major, even historic, lithium score. Remember, the property spans 318 placer claims totaling 6,360 acres and is located on the southeast side of southern Clayton Valley, making it accessible via paved roads from Tonopah and Goldfield. That accessibility is a critical advantage that saves money and time and also helps to accelerate project timelines. To the west is its Highlands West project, located as one would expect: on the west side of Southern Clayton Valley. Consisting of 298 placer claims totaling 5,960 acres, it, too, is a sizable property.
But here's the part that stands out, or at least should: the project is strategically located among many top-tier exploration companies, including Pure Energy and Spearmint Resources. It's a case where being in good company within the Clayton Valley area matters. SCVFF’s properties border Pure Energy's Lithium Project, bringing the potential to host multiple types of lithium mineralization at its 100% owned landholding. That parcel totals 9,140 total acres in Clayton Valley and represents two of the most significant under-explored projects bordering major lithium discoveries.
Those unfamiliar with the Clayton Valley area should be pleased to know that it's a lithium brine district hosted within the Esmeralda Formation, a sequence of lake basin-fill rocks that contain zones of volcanic ash-rich stratigraphy and salty evaporite units. Regionally, these Esmeralda rocks are of late Miocene to early Pleistocene age, from 1 million to 5 million years before the present. The Albemarle brine production field at Clayton is sourced from weakly to non-lithified volcanic ash horizons, which have high porosity. But more importantly, it can be a rich source of lithium.
Scotch Creek believes this is likely and could prove that case from its strategically positioned projects within the Clayton "cereal bowls," getting that name by being a closed-basin brine deposit that acts like cereal bowls full of lithium. The properties above these bowls should provide access to the lithium brine beneath them.
The World Needs What SCVFF Intends To Sell
That would, of course, be excellent news to the company and its investors. But more importantly, it can be a giant step forward in SCVFF's mission to become one of Nevada's most important and valued lithium exploration companies. And for those who think size is the most critical measure in the mining sector, think again. It's location that matters. SCVFF believes they check that box as well, intent on proving it by expecting to be sitting atop one of the largest land packages in North America's only producing lithium jurisdiction.
Best of all, they will have more than a single chance to prove it. Scotch Creek has three projects totaling 14,500 acres, being explored by a team of mining veterans that can leverage over 80 years of combined experience. Incidentally, two team members are lithium experts in place to guide development and expedite advancing its projects to the next stage. That matters and has been known to be the difference in changing small exploration companies into big-time producers.
With lithium becoming the new "oil," should SCVFF indeed discover it on their properties, the transition to monetization can be a quick one.
Drilling In #1 Mining-Friendly Nevada Matters
It's a given that exploring the #1 of 83 mining-friendly jurisdictions in Nevada doesn't hurt the value proposition. And another given is that by working there, rewards could come faster than many expect. That could be the result of working at the right place at the right time, noting Nevada's intent to do its part to become the lithium production capital of the world. As such, it's quickly becoming the hub for manufacturing energy storage, clean energy, and greener transportation. All of that is important to the SCVFF value proposition, and it can remain that way as lithium demand continues to surge as the pace to go green on a global level intensifies. In fact, some companies are taking a much more proactive stance to secure what they need.
Tesla (NASDAQ: TSLA) is reportedly considering investing in or purchasing lithium exploration companies. That makes sense, knowing that their EV cars can't leave the showroom floor without lithium power to move it. Of course, the EV sector is just one of those needing what Scotch Creek is after. Global business giants like General Motors (NYSE: GM), Ford (NYSE: F), and even aerospace companies like Lockheed Martin (NTSE: LMT) need to secure access to lithium to power their programs, whether they be EV, battery development initiatives, or creations powering a new and lasting generation of products.
The takeaway - the world needs what Scotch Creek Ventures wants to sell. So, whether invested or not, those rooting for cleaner and greener environments and power must also root for companies like Scotch Creek.
Capitalizing On Lithium Frenzy
With at least two lithium properties in Clayton Valley, Nevada, its Miranda Project near the Silverpeak Lithium operation, and MACALLAN East, which borders Pure Energy's projects, SCVFF and its believers have many chances to be proven correct. If so, results could be best described as a win-win-win-win proposition. Scotch Creek wins financially, the clean and green-energy sector gets the lithium it needs, populations get clean air and water, and SCVFF investors get a potential windfall financially in the process.
So, don't think small when it comes to Scotch Creek Ventures. They are doing big things in a booming market. In fact, the only thing small about SCVFF is its share price, but that can change in a hurry, even as soon as its next update. Thus, with expert management and properties that could fuel a breakout, ignoring the valuation disconnect between price, assets, and project pace may not be the wisest consideration.
Instead, taking a speculative shot at this promising exploration company that could be situated atop a fortune in lithium may be the more appropriate option. A timely one, as well.
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