The first MRE could be anything, as we have not been provided with enough information. The pegmatite obviously pinches and swells a large degree and this will work against a very large initial MRE because of the krigging that will be used.
The company has also not provided any cross sections with the drilling results to date, which makes depth and width of some of the holes hard to interpret, short of drawing it all up for myself, which I haven't bothered to do. It would take a lot of hours to do that from all the separate announcements..
However with some WAG assesments, I still come up with a conservative 100 million tonnes at 1.5-1.6%, with a lot of extra drilling and some good cross sections from the company needed to enlarge that greatly. Potential though is 300Mt+, assuming the CV5 extends at depth, and with lots of infill drilling.
The entire tenements though with all the various pegmatites could easily go over 1B tonnes, but that will take 25+ years to prove up..
Given the current Mcap of over $2B at $1.80, I consider this a no-brainer long term lithium hold, with Mcap going well over $10-20b when the mine is up and running. Only real negative will be if there are Native title issues when it comes to mining permit application in several years time. IMHO one or more of the majors will try to take this out in the next couple of years as MRE grows...
PMT Price at posting:
$1.79 Sentiment: Buy Disclosure: Held
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