Kairos Minerals Ltd (ASX:KAI) is a miner of lithium, a commodity with an exceptional outlook. The strong demand outlook for lithium is driven by the revolution in green energy storage and the use in electric cars, consumer electronics and home and industrial energy storage.
According to Goldman Sachs, demand for lithium is expected to triple as electric vehicles corner 3.5 per cent of the new car market by 2025.
Large new companies such as Tesla, Boston Power, Foxconn and BYD Electronics are expected to ramp up lithium demand. In addition, China is expected to be a major buyer under its 2020 New Energy Plan.
Kairos recently acquired the strategically located Mt. York Lithium-Gold Project and the Wodgina East Lithium-Tantalum Project in its drive to scale up lithium assets. These highly prospective assets in the emerging East Pilbara region, also known as Australia's "lithium hotspot," are expected to complement the company's existing portfolio of high-quality nickel and gold projects in Western Australia.
New project applications include the Strelley, Tabba Tabba, Wodgina North and Woodstock-Tambourah lithium projects.
The thrust into lithium also represents a strategic diversification of the company's commodity base, and it therefore changed to its current name from the earlier Mining Projects Group.
Kairos therefore boasts of a dominant lithium and gold portfolio established in Western Australia's premier Pilbara lithium province and spread over circa 700 square kilometres. Exploration is already underway at the Mount York and Wodgina East projects.
Maiden drilling is expected to commence in the third quarter of 2016. Shareholders can look forward to a period of strong pending news-floor as the company tests some of its priority targets identified at the Pilbara Project.
Shares in Kairos are currently trading 2.67 per cent higher at $0.077, up sharply from just $0.004 on March 18.
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