Round 2 of why I love the potential of LPD, and the most likely to bring ST/MT growth. Our Lemare tenement in Quebec, CAN. Recently released results of stage 1 of the maiden drilling program with stage 2 currently under way, results expected near term. Stage 1 released some of the best results and grades I have seen, at an early stage.
High-grade lithium confirmed by diamond drilling at Lemare
Results include 21 m @ 2.65% Li2O, 41.5 m @ 1.71% Li2O and
23 m @ 1.61% Li2O
All lithium mineralisation contained within spodumene
Main pegmatite extended to 300 m length, and open to the northeast
New spodumene pegmatite identified to the SW, 600 m strike, up to
4.26% Li2O in rock chip samples
So why didn't we see a significant SP rise, upon the release of such results?
There was some criticism of the company regarding the timing of the release. CXO released good results that morning and had been loaded up on. There was no trading halt to build anticipation and get the markets attention and the announcement came just before lunch, catching everyone off guard. I believe, IMO only, this may have been a deliberate play. Considering what came next, well ..we got dumped into hard and the SP ended the day where it started, after a large holding of stock was disposed. Why and whom? Well without any evidence, we could only hypothesise.
Regardless, what remains here is a junior with some solid runs on the board, with many very promising irons in the fire, a diversified inventory of technology, high grade spodumene, JV's, high grade Mica deposits and a world class management team, all with a MC circa $20m. The potential for many bags is very real.
Back to Lemare, yes the grades are there and it's longer, wider and deeper than anticipated. The value and hedge lies in its location. The risk with any junior in this space is failing to find the quantity to sustain a stand alone mine, a la' DKO. Who did recently make a good dollar in offloading the project to their neighbour.
What we do have going for us here, is the infrastructure being put in place within the immediate area.
Nemaska, a stones throw away, has a third party contractor in place to concentrate their spodumene for them representing massive CAPEX savings, in addition to being in the advanced stages of developing a phase 1 carbonate plant.
Critical Elements, just down the road, who still have a %25 interest in our Lemare holdings. Have off take agreements already in place in exchange for significant upfront CAPEX funds.
Galaxy and a few others also have interests in the vicinity. Hence, the hedge, if we can't cut it as a stand alone mine, we have numerous parties next door who would be looking at their own economies of scale. If we had to we'd get a solid price for the asset.
Failing that, the option remains just to blast the dirt, truck it into town for either concentrating and/or processing. Or potentially offload our spodumene to the neighbours in exchange for high quality Mica to feed our own LMAX plant. Many options are on the table, likely resting upon the JORC we can uncover at the site.
The region is proving up to be the one-stop shop for all your Lithium needs.
By the way, we also have another very atractive JV in the area at St Georges. More on that one later.
Tell me guys, what excites you most about the potential of LPD??
Call me a ramper, I don't shy away from that. I'll tell you all day long, how much I think of this little gem.
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