ACME Lithium (CSE: ACME, OTC: ACLHF) is an exploration company focused on several North American lithium opportunities. With two of these projects in Nevada and the third one in Manitoba, ACME has the potential to provide lithium for the new energy era. The company shared updates, including drilling operations at Shatford Lake lithium and Clayton Valley Nevada lithium brine projects. Many catalysts augmented the investor confidence, showing an increase in the market cap valuation. 

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Company Overview

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ACME Lithium is an exploration company focused on acquiring, exploring, and developing battery metal projects in Nevada and Manitoba. The company has already acquired 100% interest in 266 lithium and lode mining claims in Nevada, totalling approximately 5,415 acres in Esmeralda County. ACME Lithium also holds a 100% interest in 37 mineral claims in Manitoba, covering 17,000 acres, and 18 mineral claims in Northeastern Saskatchewan for a total of 41,694 hectares. The company holds several projects, but in this article, we will focus on the ones that got updates. 

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Shatford Lake project

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Located in Manitoba and particularly in the Southern limb of the Bird River Greenstone Belt, the project comprises 21 claims totalling approximately 8,883 acres. The claims are located along a structural trend of the Greer-Shatford Shear Zone that is 15 kilometers long and features numerous pegmatite dykes and advantageous host rocks. Using remote sensing, structural geology, ground-based geological mapping, and geochemical sampling, ACME completed a comprehensive exploration program in the summer of 2022 to identify drilling targets. In Early January, the company announced it commenced its 5,000m drilling program and mobilized equipment, supplies, and crew to Lac du Bonnet, Manitoba. Drill targets are expected to extract pegmatites, some of which were undocumented prior to the 2022 summer exploration program.

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Clayton Valley Nevada lithium brine project

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This project is located in a highly prospective region for lithium mining and development. According to the U.S. Geological Survey, Clayton Valley is one of only three lithium-enriched areas in the world. The Silver Peak Lithium mine, owned by NYSE-listed Albemarle and operating since 1966, is where the project claims are situated. It is the only lithium brine production facility in North America. The Silver Peak lithium brines, where samples have been analyzed up to 228 ppm lithium and concentrations up to +1,000 ppm have been found to occur within particular horizons of fine sediments, may be similar to the lithium brines that our Clayton Valley project has the potential to host. There, the company announced its phase 2 drilling program. Phase 2 will investigate the characteristics of the lower gravel unit intercepted in DH-1, which contains a highly prospective lithium brine aquifer. The program's primary goal is to describe lithium brines' potential vertical and lateral extent in deeper gravels close to the bedrock contact. The program will examine the likelihood of continued operation of the Clayton Valley regional lithium brine reservoir.

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Fish Lake Valey

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This project consists of 144 lode mining claims totalling approximately 2,975 acres in Esmeralda County, Nevada. Historial sampling showed up to 610 ppm lithium. The world-class Rhyolite Ridge Lithium-Boron project area of Ioneer Ltd is adjacent to ACME's Fish Lake Valley project, which is located directly west of it. On January 13, 2023, the US government disclosed that Ioneer's project would receive construction funding of up to $700 million. ACME’s property provided significant lithium values, with the highest surface lithium returning up to 1,325 ppm lithium. This most recent study confirms lithium occurrences on the property, both old and new, as well as the enrichment of some beds in lithium. Many surface-enriched beds resemble clay-altered tuffs and could form semi-continuous sedimentary horizons beneath relatively unmineralized cover units.

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Share structure/Financials 

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The company’s latest financials occurred for the period ending September 30, 2022. ACME holds a solid balance sheet, with $9.8M in the bank for no debt. The company spends most of its money on marketing ($1M) and share-based compensation ($2.1M). Still, the company declared 53.4M shares issued and outstanding, 3.5M options, and 13.3M warrants. 

6,900,000 warrants were exercised into common shares at $0.10 per share for total gross proceeds of $690,000, and 745,625 warrants were exercised into common shares at $0.60 per share for total gross proceeds of $447,375. 

The stock price is performing well. MoM, it returned 124%. The stock is traded around $0.70 for a 52-week range variating from $0.25 to $1.25. 

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Bottom Line

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ACME Lithium (CSE: ACME, OTC: ACLHF) shows significant progress on its Shatfor Lake, Clayton Valley, and Fish Lake projects. The company is also well-funded, with low expenses (excluding marketing & share-based compensation) combined with an attractive share structure. The company’s valuation doesn’t stop and could continue returning a positive ROI to investors.

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