How to Get Involved in the Red Hot Lithium Boom – Updated for Round 2

 

ORRP

To our subscribers-

We hope you have been enjoying our ORRP alert we entered last July 5th at $1.36. You can view this below. Since our alert, in the two weeks that followed, we saw the stock run up to reach a peak of $2.04. Since then we have retraced and are now calling the play again for round 2. Remember, always take profits when you can. Get ready for round 2 and enjoy our updated analysis on this great play.


The case for ORRP keeps getting better even as the stock keeps edging a little lower into a pocket of key support around the $1 level. At this point, the technical signal is extremely robust, and the fundamentals continue to be very difficult to argue with.

In short, ORRP is an emerging key player in the lithium production space. Thanks to continued pressure on supply through lithium-ion battery producers like Tesla.

At the same time, the overall picture for risk assets is glowing right now with US economic data so far taking off in Q3 (the Atlanta Fed is measuring GDP now growing at 3.8% in the US), last week’s jobs data came in way above expectations, and the stock market hit yet another all-time high today (which seems to happen about every day).

Small and micro-cap growth plays should be thriving in this environment, and we expect ORRP to have easy access to another jump after our first success.

 

Symbol:  ORRP

Company:  Oroplata Resources, Inc.

Quote:  http://finance.yahoo.com/q?s=ORRP

Latest News:  http://finance.yahoo.com/q/h?s=ORRP+Headlines

Company Website:  http://www.oroplataresourcesinc.com

Key Points:

  • ORRP is a key emerging player in the exploding lithium space, which is seeing historic growth right now.
  • ORRP announced the formation of a wholly-owned subsidiary to act as the registered title holder of all company lithium projects
  • ORRP has a tiny trading float of just 15.00M, which suggests the stock could launch higher on any additional influx of interest.
  • ORRP is showing a clear surge in interest, with volume over the last couple weeks tracking 135% above its recent average levels.

ORRP is focused on becoming a substantial profitable Lithium producer by the rapid development of valuable production-grade Lithium Brine deposits in the Railroad Valley in Nevada.

We discussed the facts on the lithium boom recently, but an overview is still useful here:

We know this quote just about sums it up: “We basically need to absorb the world’s entire Lithium-ion production”. That’s right from Musk’s mouth, himself.

At this point, Lithium is in a major boom phase.

In the U.S., the Wall Street Journal just did a piece showing that the mainstream popularity of electric cars will likely reduce gasoline demand by 5% to 20% over the next two decades, assuming that EVs gain more than 35% market share by 2035. But, for the average investor, it’s extremely difficult to find a play on that boom. Well, ORRP is just exactly that. This is the new and burgeoning hot spot in the quest to eliminate carbon from transportation. As noted above, analysts are starting to project that market consumption of Lithium could triple from 160,000 metric tons to a staggering 470,000 metric tons by 2025.

ORRP is on the verge of possibly becoming a major player in this game.

In fact, the company just announced the formation of a new wholly-owned subsidiary, Lithortech Resources Inc., to act as the registered title holder of all company lithium projects going-forward. (See Full Press Release Here).

Craig Alford, CEO of Oroplata Resources, commented, “The formation of the new Lithortech Resources wholly-owned operating subsidiary will enable the Company to better link its corporate name to the fast-growing lithium sector while preserving the established Oroplata name at the parent level.”

You can check out the new website at www.lithortech.com.

This comes on the heels of a string of strong announcements that have firmed up the company’s status as a leading player in the Nevada lithium space.

For example, the Oroplata geological team is in the process of reviewing all available well data and refining a planned 2016 Exploration Program of drilling and geophysics for the Western Nevada Basin (WNB) lithium project.  The WNB Project is located approximately 94 miles (151 kilometers) northeast of Tonopah, NV, in Nye County, Nevada.

Oroplata holds a 100% interest in 500 claims over 10,000 acres in one of Nevada’s largest trapped drainage basins in an area that was first identified as lithium rich by the United States Geological Survey (USGS). The Company also has an exclusive option to acquire an additional 700 mining claims in the area for a total of 24,000 acres.  (See Full Press Release Here).   

In addition, the company just announced that it has entered into a binding agreement with Plateau Ventures of Utah, to exercise its second option to acquire an additional 700 mining placer claims at the Western Nevada Basin project (“WNB”), in Nevada. (see PR here).

That’s called: An Expanding Footprint. And it’s about the most important point one can make in a production-of-a-scarce-resource type of scenario.

And, as we covered last time, in an extremely important release last month (see full press release), ORRP announced that it has entered into an agreement with the vendor of the Western Nevada Basin Project (“WNB Project”) to immediately eliminate the existing net smelter royalty (“NSR”). That makes a similar point.

That said, while this is all extremely encouraging, the technicals on this stock are perhaps even more compelling.

You rarely see such a well-formed pullback opportunity: the float is tiny (at 15m shares), average volume is aggressive increasing (10-day avg volume now exceeding the 3-month avg by 130%), and RSI is repeatedly telling us that the stock simply can’t manager to break under the $1 support zone.

With clear resistance above at $2, there’s a ton of room above to run for ORRP right now.

About ORRP


ORRP (Oroplata Resources, Inc.), an exploration stage company, engages in the acquisition, development, and exploration mineral properties in the Dominican Republic and internationally.

ORRP is now primarily engaged in the rapid development of exceptional production-grade Lithium Brine deposits in Nevada and throughout the southwest U.S.

ORRP was founded in 2011 and is headquartered in Puerto Plata, the Dominican Republic.

 

Take a look at our new pick:  Oroplata Resources, Inc.  (OTCMKTS:  ORRP).

ORRP.ChartUpdated

The market has quickly bounced back following scary news of the UK’s vote to exit the EU. The bull is reasserting itself.

And that means we have to focus on the big trends that are working best.

Perhaps most poignantly an example of such a trend is the move toward carbon-free transportation.

One of the best ways to play this unshakeable trend is lithium, the central ingredient in the production of batteries powering electric cars such as Teslas. In fact, analysts are starting to project that market consumption of Lithium could triple from 160,000 metric tons to a staggering 470,000 metric tons by 2025.

ORRP is an emerging leader in the production of Lithium. Check it out!

Symbol:  ORRP

Company:  Oroplata Resources, Inc.

Quote:  http://finance.yahoo.com/q?s=ORRP

Latest News:  http://finance.yahoo.com/q/h?s=ORRP+Headlines

Company Website:  http://www.oroplataresourcesinc.com

Key Points:

  • ORRP is a key emerging player in the exploding lithium space, which is seeing historic growth right now.
  • ORRP has a tiny trading float of just 15.00M, which suggests the stock could launch higher on any additional influx of interest.
  • ORRP is on a tear since IPO-ing, with a monster trend already in place to the upside.
  • ORRP is seeing increasing volume in recent days, suggesting the stock has the liquidity to trade at current and potentially higher levels.

ORRP is an exploration stage company that engages in the acquisition, development, and exploration of mineral properties in the Dominican Republic and internationally.

More recently, the company has shifted its focus to the rapid development of exceptional production-grade Lithium Brine deposits in Nevada and throughout the southwest U.S.

This is the new and burgeoning hot spot in the quest to eliminate carbon from transportation. As noted above, analysts are starting to project that market consumption of Lithium could triple from 160,000 metric tons to a staggering 470,000 metric tons by 2025.

In the U.S., the Wall Street Journal just did a piece showing that the mainstream popularity of electric cars will likely reduce gasoline demand by 5% to 20% over the next two decades, assuming that EVs gain more than 35% market share by 2035.

The simple fact of the matter is Lithium is in a major boom phase. But, for the average investor, it’s extremely difficult to find a play on that boom. Well, ORRP is just exactly that.

The ball is rolling along at an increasing speed for Lithium demand. And ORRP is one of just a handful of companies on the mineral extraction side of that equation, suggesting the potential for monster growth in share values.

ORRP just updated investors on its own asset in Nevada, with an examination of a large geochemical dataset that has confirmed the presence of highly anomalous Lithium values in the 100% owned Western Nevada Basin project.

In addition, in an extremely important release out on Friday of last week (see full press release), ORRP announced that it has entered into an agreement with the vendor of the Western Nevada Basin Project (“WNB Project”) to immediately eliminate the existing net smelter royalty (“NSR”).

With the elimination of the overriding NSR, ORRP will now acquire a true 100% interest in the WNB Project.  The vendors of the project agreed to remove the originally proposed NSR for a consideration of 636,943 shares of common stock in the Company.

The chart also confirms this picture, with shares of ORRP in their own boom since the company IPO’d this Spring.

ORRP came out of the gates like a house on fire, ripping 200% in a week. It’s held those levels on increasing volume. Our sense is that this stock is setting up now for an extension to the upside. Remember, this thing has a tiny float of just 15M shares, which may exaggerate any breakout as the squeeze hits.

About ORRP

ORRP (Oroplata Resources, Inc.), an exploration stage company, engages in the acquisition, development, and exploration mineral properties in the Dominican Republic and internationally.

ORRP is now primarily engaged in the rapid development of exceptional production-grade Lithium Brine deposits in Nevada and throughout the southwest U.S.

ORRP was founded in 2011 and is headquartered in Puerto Plata, the Dominican Republic.

Keep your eyes on ORRP over the next few days and get ready to take advantage of this trade!