Five ASX lithium stocks trading under AU$1 in 2023

Highlights:

• In the December 2022 quarter, prices of lithium were strong and remained near their record high.
• The APAC region, especially nations like Japan, China and South Korea, are major lithium consumers.
• Arizona Lithium Limited (ASX: AZL) entered into a binding pre-acquisition agreement to make a 100% acquisition of a Canadian lithium brine entity.

The lithium market has been witnessing rising demand, mostly propelled by the increasing usage of batteries, chemicals, solar panels, etc. The major market for lithium consumption is the APAC region, especially nations like Japan, China and South Korea.

For the quarter ended 31 December 2022, prices of lithium were strong and remained at their record high. The substantial upswing in electric vehicle demand drove consumption of the battery metal in the period.

Electric vehicle sales as a percentage of overall new car sales across the globe is growing every year, and as lithium-ion batteries power most EVs, demand for lithium is expected to remain robust in the near future.

Given this backdrop, let us flick through five ASX-listed lithium penny stocks.

Minrex Resources Limited (ASX: MRR)

This battery metals explorer has lithium-tin-tantalum projects in the Pilbara. The company also has a portfolio of highly prospective gold-copper projects.

On 25 January, the company released its December 2022 quarter report wherein it said that it had concluded stage-1 reverse circulation drilling work at Tambourah North and Talga - Moolyella North Lithium Project. Minrex concluded nine reverse circulation drill holes totalling 1,159 m across the Tambourah North lithium project in the latter part of December last year. Drilling work will restart pending assay results, good weather and the availability of a drill rig in either March or April this year.

In Talga Mollyella Lithium Project, three major targets from twelve regions were tested for drilling work. It was done on the basis of both soil geochemistry and mapped pegmatite dyke zones combined together.

Minrex had a cash balance of AU$13.02 million as on 31 December 2022 and it was reviewing multiple opportunities for potential lithium partnering and acquisitions.

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as of 14/02/2023, 04:24:16 PM AEDT

Arizona Lithium Limited (ASX: AZL)

This Australia-based exploration company is engaged in developing its Big Sandy Lithium Project in Arizona and Lordsburg Lithium Project in New Mexico.

In the quarter report ended December last year, Arizona entered into a binding pre-acquisition agreement to make 100% acquisition of Prairie Lithium Corporation, which is a Canadian lithium brine entity and is known for its advanced direct lithium extraction projects.

Further, in the quarter, Arizona Lithium signed a strategic alliance terms sheet with Navajo Nation-owned Navajo Transitional Energy Company, LLC.

Also, in the said period, the company started Definitive Feasibility Study (DFS) of Big Sandy Project. In October last year, the scoping study was concluded, finding unique prospects utilising new extraction technology.

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as of 14/02/2023, 04:24:16 PM AEDT

Anson Resources Limited (ASX: ASN)

Explorer and developer of natural resources, the company’s Paradox Basin Brine Project is developing a global-level lithium brine project on Tesla's doorstep in the US.

On 1 February 2023, the company released a Benchmark World Tour Investor Presentation wherein it discussed its strategy to extend support net zero by 2050. It also discussed its Paradox Lithium project, resource expansion (Eastern and Western strategy), Paradox Basin, Green River Project, etc. 

In the December quarter update, the company confirmed a significant mineral resource upgrade (Around 1,037,900 tonne of Lithium Carbonate Equivalent along with 5.27 metric tonne of Bromine) at Paradox Lithium Project.

In the reported period, the company staked the Green River Lithium Project, including a total of 1,251 placer claims for the region of 10,620 hectares at Utah located Green River.

Yellow Cat Uranium Vanadium Project is based 30 km north of Moab, Utah. Also, Anson stock was integrated in the Global X Uranium ETF (NYSE:URA), the biggest Exchange Trade Fund in the uranium and nuclear industry, with net assets of around US$1.716 billion (as of 25 January this year).

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as of 14/02/2023, 04:24:16 PM AEDT

Ragusa Minerals Ltd (ASX: RAS)

An Australia-domiciled entity, it has interest in projects like NT Lithium Project (along with Litchfield and Daly River Lithium Projects) in Northern Territory and many gold projects like Lonely Mine Gold.

On 6 February 2023, the company updated that it had obtained data from a historic diamond drill-hole in the Tank Hill Prospect region that has substantial pegmatite intercept with logged spodumene. It has also got corresponding higher lithium from laboratory assay results from Regusa’s NT Lithium Project.

During the December 2022 quarter, NT “Supergroup” Lithium Project works confirmed high-grade lithium prospects, with Phase one RC drilling concluded and all assay results obtained with various encouraging LCT pegmatite indicators.

Most of the drilling-related outcomes were gained for Burracoppin Halloysite & REE Project targeting to describe JORC resources. Apart from this, it has got high-grade rare earth element results.

Further, exploration activity was carried out at priority prospects in the Monte Cristo Gold Project field.  

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as of 14/02/2023, 04:24:16 PM AEDT

Argosy Minerals Limited (ASX: AGY)

Aiming to create a sustainable lithium production entity, it has at present 77.5% (and ultimately 90%) stake in the Rincon Lithium Project in Salta Province, Argentina. It also has 100% stake in the Tonopah Lithium Project in Nevada, USA. Argosy is focused on its flagship Rincon Lithium Project, located within the world-renowned "Lithium Triangle". The company aims to be the second largest ASX-listed producer of lithium carbonate suited for batteries.

On 1 February 2023, the company mentioned that the Argentina-based Rincon Lithium Project witnessed the conclusion of 98% of  2,000tpa operational development work.

Also, 91% of the commissioning phase works at present have been finished. Argosy has generated battery quality 99.76% lithium carbonate product in single-run procedure works, as it is moving towards beginning operations on lithium carbonate production.

In the December quarter, the company has developed Nevada-based Tonopah Lithium Project's exploration activities through geophysical processing, analysis, as well as interpretation, work to describe important lithium brine targets. It then chose drill sites for strategic exploration drilling activity to establish the lithium brine potential at the project.

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as of 14/02/2023, 04:24:16 PM AEDT