This month we are underscoring FORC (FORCE ENERGY), a lithium and hydrocarbon exploration and development company based in Denver, Colorado.
The company just announced that they've hired geologists who are going over previous drill data to select the best possible locations for a series of drills to determine what will be the best means for extraction of the nearly 2MM tons of Lithium ore that comprises the Zoro 1 resource.
Here's the point that I want you to keep in mind through all of this: These news releases are not just for you and I, as well as other traders... FORC stands a very good chance of SELLING a resource like Zoro 1 if they can prove that 1) the resource exists, and 2) it can be extracted profitably.
These press releases are keeping the mining world instructed of the progress and could prove to be the bait that reels in a big player in the near future! The first part has already been proven, which is that Zoro 1 is a massive Lithium resource, with nearly 2MM tons of Lithium ore. The second part is what they are attempting to prove now, which is that it can be extracted profitably. Now think about gold, and how old mines that were declared unprofitable years ago are now profitable because of the price increase over recent years.
Now think about the following, and how it could affect the profitability of Lithium resources: The real meat-and-potatos in Lithium, at least with regards to these small cap and junior exploration plays, is the current constriction between the US and Iran, which by the looks of things, isn't going to just disappear into a cloud of group hugs anytime soon! You see, Iran has threatened to shut down the Strait of Hormuz, a strategic shipping lane through which over 1/6 of the world's oil passes on its way to diverse global destinations. Now, this could potentially blow over, but regardless of what happens, you can bet on the price of oil being affected very soon, this is for sure!
If you look back to what happen the last time oil got rocked like this and jumped to $145/barrel, we saw alt. energy stocks boom, with Lithium jumping 1200% in a flash!
Can you imagine what would happen if the US/Iran tensions pushed oil to $150, like several CNBC analysts are talking about?
So, until the US and Iran are best buddies, and/or the electric automobile is developed with a battery that doesn't require up to 1/2 ton of Lithium to power,
I'm going to remain a strict believer in the future of Lithium and Lithium exploration plays, and more specifically, FORC!
So keep FORC on your radar, and get ready to take advantage of what we think will be similar to last year's action....
Once FORC tears through the resistance we are seeing at the lower price range and hits its next "growth spurt"... we should see it well into the $0.18 - $0.20 range!
As always, we really regard you taking the time to read and act on our profitable research-driven picks. Have a great day and we'll see you at the opening bell!
