Lithium Rush: How ION Energy is Redefining Mongolia's Mineral Wealth

Mongolia, a treasure trove of natural resources, has emerged as a pivotal force in the global mining arena. As the world now turns its focus to renewable energy and technology, lithium, the white gold of the 21st century, positions Mongolia at the heart of this revolution.

The Mongolian mining sector, a cornerstone of its economy, has been a magnet for substantial foreign investments, driving significant economic growth. With lithium's ever-growing demand in industries such as electric vehicles and high-tech batteries, Mongolia's wealth in this crucial resource is not just an asset; it's a game-changer. This strategic edge in lithium harnesses the potential to elevate Mongolia's global economic standing, making it an irresistible destination for futuristic investments.

Mongolia's Mining Sector: A Key Economic Driver

The mining sector has been the backbone of Mongolia's economy, contributing significantly to its GDP and exports. In 2021, mining accounted for about 22 percent of Mongolia's GDP and over 80 percent of its total exports. Mongolia primarily mines coal, copper, and gold, with several large-scale mining operations in the country. The country notably attracted the multi-billion dollar company Rio Tinto, which has become a major player in the mining sector in Mongolia, particularly known for its involvement in the Oyu Tolgoi copper and gold mining project (one of the world's largest known copper and gold deposits). 

Mongolia is emerging as a global hotspot for lithium, boasting confirmed reserves of over 203,000 tonnes of this crucial rare-earth metal. These substantial lithium resources are predominantly found in the southeastern region of the country, strategically located near key Chinese mining initiatives such as Baotou in Inner Mongolia. Additionally, exploratory efforts are actively underway in the western salt lakes, including Hyargas Noor, an area that not only promises lithium but also contains significant uranium deposits, further highlighting Mongolia's mineral wealth.

Maybe it is hard to map Mongolia in the world, but its neighbours will add some clarity.
Mongolia's strategic location next to China offers a golden opportunity for its burgeoning lithium industry. Firstly, China, a global lithium powerhouse, is experiencing a surge in demand, especially from its rapidly growing electric vehicle (EV) and battery manufacturing sectors. Mongolia, with its rich lithium reserves, stands as a crucial supplier right at China's doorstep. This proximity is not just a matter of convenience; it translates into tangible benefits, such as significantly reduced transportation and logistics costs. The ease and cost-effectiveness of delivering lithium to Chinese manufacturers cannot be overstated.

ION Energy Is THE Lithium Underdog in the Region

Investing in Rio Tinto is a safe bet, but what if you decided to become more speculative and give a chance to an underdog? Everybody remembers Rocky vs. Creed’s fight and the final result. Well, picture Rocky as ION Energy. 

ION Energy Ltd. is revolutionizing lithium exploration in Mongolia with their pioneering Baavhai Uul project, marking Mongolia's entry into extensive lithium brine exploration. Coupled with the strategically important 29,000-hectare Urgakh Naran license, ION is leading the charge in uncovering Mongolia's vast but largely untapped lithium potential. Guided by the seasoned expertise of Matt Wood, who has been integral to the company's journey since 2009, ION has made significant strides. Wood's experience, especially in asset de-risking and executing a notable $0.5 billion coal asset sale to Banpu Thailand, is central to ION's strategic approach: acquire, de-risk, and then collaborate with major industry players for further development. 

Their recent breakthrough in lithium exploration is a game-changer. ION discovered an impressive concentration of 911ppm lithium in select drill holes, a rarity in the region's exploration history. This finding highlights the untapped wealth of Mongolia, where just 3% of the terrain has been explored. The geological landscape, with its visible evaporite formations and endorheic basins, echoes the renowned lithium triangle, suggesting immense potential for lithium resource development. With a unique blend of local insight and global business acumen, exemplified by its half-Mongolian board, ION stands out in the lithium sector. Their approach transcends mere exploration; it's about pioneering a sustainable energy future.

The Baavhai Uul Project

The Baavhai Uul Project is a groundbreaking venture in the realm of lithium exploration in Mongolia. Spanning an impressive 81,000 hectares, this project is not only the largest of its kind in Mongolia but also a beacon of potential in the global lithium landscape.

At the heart of this project lies a treasure trove of lithium reserves. Drilling results have been nothing short of extraordinary, unveiling an average lithium grade of 426 ppm and reaching peaks as high as 1502 ppm at certain prospects like the White Wolf. This wealth of lithium is set against the backdrop of the Gobi Desert, a region ideally suited for lithium brine extraction. The desert's arid conditions, coupled with high evaporation rates, create a perfect natural setting for cost-effective lithium production. Below the surface, aquifers enriched with volcanic and sedimentary rocks further enhance the site's lithium concentration, offering a distinct edge over traditional hard rock lithium sources.

Moreover, Baavhai Uul's strategic proximity to China, a mere 24 kilometres away, opens doors to one of the largest lithium markets in the world. This geographical advantage is not just about logistics; it's about tapping into a burgeoning demand with unparalleled efficiency and speed.

The project has also embraced cutting-edge exploration techniques, utilizing extensive Transient Electromagnetic (TEM) surveys. These surveys have sketched out a vast 22.7 billion cubic meter brine aquifer, showcasing properties akin to those found in the famed Lithium Triangle. 

The Urgakh Naran Lithium Brine Project

The Urgakh Naran Lithium Brine Project, situated in the resource-rich South Gobi Desert, marks a significant milestone in lithium exploration. This project is notable for its substantial lithium brine discovery, with surface samples from shallow pools revealing lithium concentrations as high as 918 mg/L, the highest grade ever recorded in Mongolia.

The geological and morphological characteristics of Urgakh Naran are exceptionally promising. The region bears similarities to the famed Nevada Playa Basins and South American salars, known for their rich lithium deposits. The presence of artisanal salt harvesting in the area's surface evaporite layers, found in dry ponds and lakes, further underscores the potential richness of the lithium brine available here.

Drilling efforts have been extensive and fruitful. Three lithological diamond core drill holes reached a total depth of 954 meters, revealing an average lithium grade of over 320 ppm across 100-meter intercepts. Notable findings from these drillings include:

• UNDH-01: A 123-meter stretch showed 278 ppm lithium, with a peak of 832 ppm over a 2-meter segment.
• UNDH-02: This hole revealed 362 ppm lithium over 100 meters, reaching up to 601 ppm in a 2-meter section.
• UNDH-03: Yielded 360 ppm lithium over 71.4 meters, with a high of 911 ppm lithium across a 2-meter segment.

These results from Urgakh Naran highlight its potential as a significant player in the lithium market, offering promising prospects for future exploration and development in this region

The Experienced Team is Backing the Company Toward Success

https://www.ionenergy.ca/leadership/

PAUL FORNAZZARI​ Advisory Board Member

• Served as inaugural Chair of Lithium Americas and secured its initial strategic investments from Mitsubishi and Magna International. 
• Former Director of Neo Lithium Corp. Currently, Paul is a partner with Fasken Martineau DuMoulin LLP, where he is head of Latin America for the Global Mining Group, and is also a member of the TSX-V’s National Advisory Committee. 

ENKHTUVSHIN KHISHIGSUREN​ Director

• Over 30 years of Mongolian mineral experience for multi-nationals. 
• Credited for having discovered several prospective gold, molybdenum and copper deposits, including the Olon Ovoot multimillion-ounce gold deposit.

DON HAINS Advisory Board Member

• President of Hains Engineering Company Limited and Principal of Hains Technology Associates. 
• An industrial minerals exploration and economic geologist with more than 30 years of experience in exploration, development, use and analysis of industrial minerals properties and materials. 

What’s Next For ION Energy? 

With its recent funding, ION Energy will target the development of the Urgakh Naran site in Mongolia, marking a pivotal step in the company's journey. ION Energy is set to conduct the country's first-ever resource estimate for brine. This effort is particularly noteworthy given the rising global interest in critical metals, a sector where Mongolia is increasingly becoming a focal point for government and strategic investor attention.

A Key Summary for Investors

ION Energy stands at the forefront of Mongolia's burgeoning lithium sector, a key economic driver in a country rich with mining potential. With the mining industry contributing about 22% to Mongolia's GDP and over 80% to its exports, primarily in coal, copper, and gold, ION Energy introduces an innovative shift towards lithium, a crucial element in the evolving tech and renewable energy landscapes. 

ION Energy's focus on acquiring, enhancing, and partnering with experienced strategies for these projects exemplifies a smart, forward-thinking approach. As the company gears up for its first-ever resource estimate for brine in Mongolia, it solidifies its role not just as a mining company, but as a key player in the global shift towards sustainable energy resources, embodying the spirit of innovation and economic progress.

Where To Find ION & Learn More About The Company

ION Energy trades on the TSX-V under the symbol $ION as well in the US on the OTC under the symbol $IONGF.

Explore the stock further here: https://www.ionenergy.ca/stocks/

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Toronto Office:

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90 Adelaide Street. W, Suite 400 Toronto,
ON M5H 3V9, Canada

info@ionenergy.ca

Disclaimer

The article titled "Lithium Rush: How ION Energy is Redefining Mongolia's Mineral Wealth" featured above is provided as a voluntary showcase of the company's achievements and endeavours. ION Energy, a valued media client of First Phase Capital, maintains a month-to-month retainer agreement for their comprehensive marketing needs. The article in question was conceived, written, and reviewed in-house by First Phase Capital's editorial team. ION Energy had the opportunity to review the content solely for accuracy and factual correctness before its publication. Any claims, statements, or representations within the article reflect the publication’s view and not necessarily that of ION Energy.