Patriot (CNMET, ASXMT): This is the one the former Pilbara boss Ken Brinsden joined shortly after leaving Pilbara because he sensed its Corvette discovery in the James Bay region of Quebec had the makings of being a world-class find.
We’re about to find out as Patriot has said it plans to release a maiden resource estimate for the CV-5 pegmatite swarm in late June.
Garimpeiro notes that National Bank of Canada’s equities desk has just initiated coverage of the head Canadian-listed stock (PMET) with a price target of $C17 which equates to $1.90 in the Australian market.
PMET last traded at $C12.49 on Thursday in Canada, so the implied upside to the price targets is some 36%, or 31% for PMT on the ASX which traded on Friday at $1.45 – some 7.3% higher on the day as investors heeded the call that lithium prices might well have bottomed.
The bank said PMET is on track to deliver a maiden inferred resource of a world-class deposit, potentially at the indicated resource level, to support a subsequent feasibility study.
“Based on drilling to date on the CV-5 trend, we calculate a potential inferred resource of 90Mt grading 1.35% lithia,’’ the bank said.
Brinsden will tell you that the maiden resource estimate will be very much the start of the story at Corvette. Discoveries like Corvette’s are rare things, with the takeover spotlight expected to swing firmly on to Patriot once its world class status is confirmed.
PMT Price at posting:
$1.45 Sentiment: Buy Disclosure: Held
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