Dear Dajin Shareholders:
As difficult as it's been for junior natural resource companies, there are signs of improvement. The TSX Venture Exchange bottomed in late December and is up almost 9%, while the Global X Lithium ETF (LIT), a group of lithium related companies, is up 16%. Dajin Resources Corp. (DJI:CA) / (DJIFF) remains adequately funded with warrant exercises bringing $400,000 into the company's Treasury. As Tesla Motors builds its Nevada based, "gigafactory," emerging lithium players in Nevada are finding exploration dollars easier to come by.
Despite lower oil and natural gas prices, global sales of Electric and Hybrid vehicles remain strong. Tesla Motors' cars proved too awesome for their own good, driving major car manufactures into the sector. Elon Musk's gigafactory is reportedly coming online sooner than expected. The market was surprised with Tesla Energy's entrance into the lithium-ion battery home storage market. Within a week, Tesla took orders for roughly $800 million of its, "Powerwall" home battery units. Few apparently realize that there are already a number of competing lithium-ion battery based home systems. Also, as reported by Simon Moores of Benchmark Mineral Intelligence, "...there are 5 or more gigafactories in construction or planned globally and A123 Systems just announced a doubling of their lithium-ion battery capacity."
Supply of lithium is far from secure. Politics and production quotas in the Lithium Triangle in South America may not allow for an adequate or timely supply response to an anticipated increase in demand. According to experts, lithium prices have moved higher in recent months. It's essential to understand that the lithium in a Tesla car's battery pack is roughly one tenth the cost of the entire battery. That means lithium prices have room to run before impacting the economic benefits of lithium-ion batteries. As an aside, in China alone there are almost 200 million electric bicycles, the vast majority of which are migrating to lithium-ion from yesterday's lead-acid batteries. New demand is coming from all directions and I encourage shareholders to visit our website, for our latest press releases, media, investor and lithium news. While there, please sign up for our Energy Metals Quarterly and enjoy our very well regarded infographics.
Switching gears, trading volume on our US ticker, "DJIFF" has picked up substantially as a result of the company being Blue-Skyed with Standards & Poor's thus creating the ability for thousands of investment advisors in the US to increase exposure to Dajin Resources. This S&P market access presentation feature provides investors access to the same independent profile S&P Capital IQ is now providing to brokers and financial advisors, institutions, traders and self-directed investors. Dajin continues to make important strides in its social media campaign in which the company has over 1,800 Twitter followers and an active LinkedIn presence.
With better access to capital and ongoing advances in our 100% owned lithium projects, we received a vote of confidence from the appointment of three exemplary members to our Advisory Board. Mark King, PhD, PGeo, President of Groundwater Insight Inc. is a hydrogeologist, educated in both the earth sciences and engineering. Dr. King, one of the few hydrogeologists in North America with experience in the field of lithium brine deposits has recently provided expertise for three successive phases of Resources and Reserve Estimation at a lithium brine deposit in South America. John Kieley, PGeo, is an experienced project manager and exploration geophysicist with significant experience in exploration for lithium deposits. He was the Vice President of Exploration for Lithium Americas Corp. in Argentina while Lithium Americas was in full exploration and development mode. Dick Benoit, MSc, President of Sustainable Solutions, a Nevada consulting company with international experience exploring and drilling on the enclosed basins that hosts the lithium deposits .
I am pleased to report that our management team and newly appointed Advisory Board are working quite well together. We have a wide range of skill sets to call upon. I invite readers to visit our website, dajin.ca to read the full bios of the existing team, Directors and Advisory Board. Since my last letter, we continue to execute upon our plan by achieving key milestones.
In December, 2014 we delivered our first batch of shallow brines and solid samples to labs in Reno, Nevada, from Dajin's 100% owned Teels Marsh claims in Mineral County, Nevada. In February, we received the lithium and boron assay results. Most importantly, this program confirmed the presence of near surface lithium in dry and wet sediments within an anomalous zone up to 18,000 feet (5,480 m) long and up to 6,000 feet (1,820 m) wide. Recall, our Teels Marsh property is located approximately 50 miles (80 km) northwest of the lithium production unit of Rockwood Lithium Inc., the only producing brine based lithium mine in North America.
Based on promising assay results in February, we initiated an exploration program consisting of a gravity survey followed by additional geological and geophysical work in preparation for exploratory drilling on the Teels Marsh claims. In March, our gravity survey was completed. The resultant three-dimensional images identified a deep closed basin of up to 8,900 feet (2,700 m) in depth which indicates the potential to retain a large quantity of fluids.
In April, we completed the staking of the Alkali Lake claims, in Esmeralda County, Nevada. This is very exciting for us as this property consists of 138 placer claims covering an area of 1,138 hectares (2,811 acres) of an enclosed basin located approximately 7.5 miles (12 km) northeast of Rockwood Lithium's Clayton Valley operation.
In late April, we received lithium assay results from a sediment sampling program carried out on Dajin's 100% owned Alkali Lake project. There were eight widely spaced locations sampled and fourteen sediment samples submitted for analysis. The program confirmed the presence of near surface lithium in all fourteen samples ranging from 73 ppm to a high of 382 ppm.
Make no mistake, the past six months has not all been about Nevada. In March, management met with the National Mining Secretary for Argentina, and other local mining authorities. A plan was organized to advance the exploration and development of the Dajin holdings in the Salinas Grandes salar located in the Province of Jujuy in northwestern Argentina. National and Provincial Government support for our plan was given during this meeting. Dajin holds a very substantial land position in the Lithium Triangle adjacent to concessions held by Orocobre Ltd.
Thank you for your continued support.
President & CEO June 2015
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