The pattern I've seen so far in Lithium is that there's a lot of dud drill results and a few good one's. If you take Core for example, they have over a hundred pegmatites that are within a few kilometers of the pegamites of those that have found to be lithium bearing. Across October to December last year Core announed dud results on 30 new pegmatite drilling prospects. While there were quite a few significant intercepts, these were primarily follow-up drilling on earlier hits. Having one or two prospects creates pretty low odds on hitting something useful. Lots of targets are needed to have even a modest chance of finding something.
If you are looking at MQR for nearology to Mt Marion, I'd have thought ESS was also a better bet. Firstly ESS's JORC resource is significantly more advanced than what MQR have. On 17 December 2019 MQR provided the map below that highlighted the location of different MQR, NMT and ESS tenaments. ESS has five different areas and in total would look to have somewhere around 5-10x the tenament area of MQR. MQR does however other stuff beyond tenaments near Mt Marion so its not as simple as saying ESS should be many times MQR's price.
As per the second picture below, there's basically a dome structure with Mt Marion on the NE side of this. ESS has the tenament E15/1710 that is on the SW side of this same dome structure. If you are looking for Nearology to Mt Marion then the other side of the same dome structure would appear a better bet. I haven't however been able to find what success ESS has had on drilling this L-shaped tenament. There has been previous drilling for other minerals. Given ESS's first priority is progressing development of its Lithium JORC resource, its probably not that high on the drilling priority list. ESS's value isn't however in these scattered tenaments that might have something. Its in a >10Mt JORC resource that that doesn't have an off-take in a world that wants Lithium.
ESS Price at posting:
71.0¢ Sentiment: Buy Disclosure: Held
