Arizona Lithium, formerly Hawkstone Mining is a mineral exploration and development company currently holding 100% interest and focus on the Big Sandy and Lordsburg Projects in the USA exploring lithium. 2021 has been a very active year for the Company with exploration on projects acquisition building the portfolio of lithium and gold projects.

Company also holds interest on Cooper and Gold Project and aims to keep moving forward with agressive exploration planned at all projects.

✅ Acquisition of the Devil’s Canyon Gold Copper Project Located in the “Carlin Gold Trend”. Highly anomalous rock samples were reported from several areas in the project with peak results of 191.5g/t Gold (Au), 524g/t Silver (Ag) and 10.25% Copper (Cu).

✅ The Company has recently completed the spin-out of its gold and copper assets to Diablo Resources Limited and has returned to a being a lithium focused explorer and developer.

✅ Excellent results from ongoing metallurgical testwork by Hazern Research on the Big Sandy mineralised material with the production of 99.8% “Battery grade” lithium;

✅ Successfully maiden drill programme on the Lone Pine Gold Project in conjunction with extensive rock chip sampling and the acquisition of the King Solomon mine leading to a major expansion of project.

✅ In October 2021, the company has announced the appointment of Matthew Blumberg as an Executive Director based in New York. He has previously worked in investment-based roles focusing on Strategy and Mergers & Acquisition. Since this announcement was released in the market we could see a big SP spike and significant higher volume in trade.

Diablo Resources

This subsidiary company is a n spin out of the USA Gold and Cooper Projects project; Diablo Resources is focused on USA gold and Gold-copper projects located in highly prospective, world class terrain. Before you get confused it as formed a separated listed company called Diablo Resources which has been recently listed under the (Asx: DBO). Anyone wanting to have exposure to this commodities should be looking at this specific stock.

Big Sandy

This is the company’s flagship project, a 100% owned Big Sandy Project, located in the US Battery Corridor in Arizona hosts a JORC compliant Maiden Mineral Resource, has a Total Indicated and Inferred Resource of 32.5 Million Tonnes (Mt) grading 1,850 parts per million (ppm) Li, or 320,800 tonnes Lithium Carbonate Equivalent (LCE), reported above an 800 ppm Li cutoff. Arizona Lithium which is currently focused on the exploration and development.

✅ In March 2021, the company managed to produce the first test work battery grade lithium carbonate at 99.7% purity from the Big Sandy Project.

✅ Lithium Recoveries of 90% have been demonstrated with minimal downstream losses. This announcement was extremely well received by the shareholders which pumped the SP up 26% in one day, quicky falling back due the lack of fundamentals behind the project.

? Big Sandy is an Arizona, USA project that can help President Biden deliver on his Green Dream for net-zero emission by 2050.

✅ The Results achieved from Big Sandy mineralisation exceed the benchmark for battery grade lithium of 99.5% purity, and overall lithium recoveries of 90% were achieved with minimal losses in downstream processing. The company is confident that it can continue to produce lithium carbonate that exceeds specifications, therefore, meeting the requirements of the most rigorous of offtakers.

✅ The company is also evaluating the option for the production of battery

🚩 This project is still very far from the key fundamental elements we look in any stock to trade which are:

  • No Pre-feasibility status,
  • No Feasibility study,
  • No Mining approval status,
  • No Development status,
  • No Potential for immediate offtake agreements until further study is taken.
  • No Production status,

Lordsburg Lithium Project

To commence exploration activities in late 2021. We couldn’t find much information available.

Technical Analysis

SP is currently bullish and it is trading in the FOMO area, it is likely that spike is going to be followed by an immediate correction. The fact the company’s lacks on releasing announcement to the market, makes this stock not so compelling to trade.

The best is buying this stock around the next SMA level (The red line). As mentioned before, Big Sandy Project is still at very early stage no offering much of security to investors for an entry at the high level of SP.

Overall, the red flag items highlight our concern about investing or trading this stock since the company is at very early stages of its Big Sandy Project and there is a lot to happen until there is more certainty that Big Sandy project is even viable. We wouldn’t trade this stock at current levels, only buying below SMA.

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