Ann: Wide High-Grade Lithium Drill Intersections at BP33, page-66

After drawing out the cross sections from these drilling results, in my opinion, this announcement is pretty misleading.



The "wide" intersections sound great but their true width is only 20 - 23m due to the vertical dip of the pegmatite.

Due to Li depletion in the shallow portions of the pegmatite, the mineable ore doesn't start until approx. 55m vertical depth, even deeper in other areas. This makes the strip ratio horrendous (approx 15:1) - perhaps U/G mining will be possible.

If you extrapolate these cross sections over a 1km long strike, you end up with a mere ~3Mt resource (+ whatever lurks at depth).

Looking at these cross sections, mining costs will not be cheap. I'd say that management are hoping that the higher mining costs can be offset by the proximity of the project to East Arm Port, or that they hit the drill lottery jackpot and come across a zone that is highly economical to mine. However, if the drills are going to continue to be return intercepts like this, then they should walk away from this project.