DAJIN RESOURCES CO COM NPV (OTCMKTS:DJIFF) has been surging over the last few weeks as other gold mining stocks have been on a run with several up 100% to 300% over the last month. It ended the day up a whopping 18.41% with over 1.54 million shares trading hands (5 times average volume. The rise in gold mining stocks is due to the run up in gold prices. Gold mining companies are highly leveraged to the price of gold which means as gold prices increase, the company’s revenues, profits, and earnings grow exponentially.
DJIFF has been on a steady uptrend since bottoming in March of 2015 at $0.032. It has gained over 300% in the last year which has far exceeded the S&P500. What is interesting is the fact that DJIFF has nothing to do with Gold. In fact, it is a junior miner in Lithium. It is an energy metals company with strategically located lithium exploration projects in both South and North America. The company has staked 138 placer claims totaling 1138 hectares (2,811 acres) in Nevada. Like many exploration companies, DJIFF currently has no revenues. The location in Nevada is only 12 kilometers from North America’s only producing brine based lithium mine. DJIFF has also staked 269 placer claims totaling 2191 hectares (5,414 acres) located on a desert beach known as Teels Marsh in another location in Nevada. DJIFF has also diversified itself internationally. It holds a 100% interest in 25 mineral concessions, which total 100,000 hectares (247,105 acres) in Argentina.
If Lithium demand takes off, DJIFF will likely be a significant beneficiary and a potentially take-out target. Larger companies have lower costs of capital, better access to potential joint venture partners and the ability to advance projects more rapidly. Assuming that Dajin’s Nevada property becomes, “worth,” $3,500 /acre, then (7,000 acres x US$ 3,500 ) = $24.5 million for Nevada alone. These calculations and possible outcomes are entirely my own, and to be clear, this wouldn’t happen overnight. Still, in just a few years, properties in Nevada’s lithium hub could be trading on a per acre basis.
Presently Dajin is working towards a hearing date with the Jujuy Ministry of Mines for the purpose of obtaining an exploration permit to explore and develop their mineral concessions. The Unit of Mining Environmental Management (UGAMP) committee is responsible for assessing the impact and benefit of any proposed lithium project in the province and upon receipt of their approval will be a major milestone for Dajin’s exploration program which will include a sampling program to establish future drill targets.
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DJIFF is currently trading at a $12.76 million market valuation. The company has a huge amount of acreage for lithium and if demand for this commodity accelerates, DJIFF will be worth a lot more than it is today. DJIFF stock has been rising steadily which likely means this is just the beginning of this story.
We will be updating on DJIFF when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with DJIFF.
Disclosure: we hold no position in DJIFF either long or short and we have not been compensated for this article.
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