80.2M Tonnes and Counting

Given that some have become a little despondent after the lack of SP appreciation I thought it might be a good time to highlight the value of Pilgangoora and remind people what we have here. As per the recent announcement we are currently sitting at just over 80M tonne at 1.26% or 1,008,000 tonnes of lithium oxide. Reading from the release on 25th May 2015, regarding the test work done by ANZAPLAN, it was confirmed that after flotation, magnetic separation and screening into a 100 – 300μm fraction, the final concentrate grade was 6.5% Li20 and 0.09% iron oxide. The announcement on 1 October confirms the homogeneity of the resource with the entire deposit thought to be the same low Fe203.

Now have a look at the following news release from Neo Metals.

https://www.businessnews.com.au/art...her-80000-tonnes-of-Lithium-pa-from-Neometals

"...In a sign that demand for Lithium is on the increase, leading Chinese lithium producer, Ganfeng Lithium Co have agreed to either take or pay for 80 000 tonnes of sub 6% spodumene concentrate per annum.

Ganfeng, who previously committed to take or pay for 200 000 tonnes per annum, or all of the 6% spodumene concentrate produced by the project, have now agreed to take a further 80 000 tonnes per annum at a cut off grade as low as 4%.

The move follows metallurgical test work which identified an additional spodumene product grading between 4% and 6% that could be produced through the addition of a floatation circuit to the current beneficiation plant.

Previously this material was destined for tailings which means that the company has potentially added an unexpected economic benefit to the project..."

So reading from the above, it is quite clear that end-users are becoming more desperate and willing to work with a lower grade product which is in itself amazing, as from my limited understanding, a greater amount of processing may be required to derive the eventual required input for production. A substandard product can cause all sorts of dramas yet Ganfeng are willing to work with it, or i should say are desperate enough to work with it.

We are literally sitting on a gold mine worth billions and I'm fairly certain that if Chinese end users are willing to take a sub-standard product that was due for the tailings heap, then our 6.5% lithium would be quite in demand. I'm fairly certain that end users are now attempting to enter binding contracts with the constantly increasing prices and lack of supply placing greater pressure on them.

Judging from the working of yesterdays announcement, it is also clear that there is much more good stuff hiding in Pilgangoora, both in the new western deposit and deeper (200m+) in the central deposit. I am fairly certain that this will eventually be proved as the largest deposit on the planet and as each day passes the true value is being unlocked. Day to day movements in SP may be frustrating, however the big picture is undeniable. We have a true behemoth of a lithium deposit in Pilgangoora. Patience will be rewarded greatly.