Aero Lithium Project & SQM

Is Lithium back? Forgotten that Talga has a potential lithium project? Let's dig in to it.

SQM's interest in this is what really sets this apart for me. They don't mess around. This is a great recent read from The West Australian on how Azure went from nickel exploration to Andover being worth $2.8bn. Great story so worth reading the whole thing, but look at the passages I've highlighted.
SQM rarely partners without strong conviction and their decision to form a joint venture on Aero suggests they see genuine potential. That alone elevates this project above the usual ASX lithium hype.




Azure never got to release a MRE before the takeover, so we don't know the exact size of Andover. The exploration target of 100-240MT at 1-1.5% and the price paid for it gives a guide that it's in the same ballpark as Wodgina, Goulamina & Mt Holland.


So what is the potential scale of Aero? Let's speculate





If that one exposed outcrop has say 100m thick lithium mineralisation then that would suggest something in the order of 130MT alone. If Aero’s corridor extends at least 14 km (and subsequent announcements revise it up to 50km), even modest repetition of that thickness could place it alongside the world’s major lithium deposits (provided there's some decent grade confirmed)

MT has said in the past that Aero is worth somewhere between $0 - $10bn. Seems reasonable.


Reminder on the JV:






What next?

The government delay has been another frustrating one, but maybe the timing has worked out ok. Any lithium news in the last 18 months and the market would have shrugged. Now the bottom looks like it's in on the lithium market, perfect time to get drilling. I bet SQM have some better rock chip sampling in the bag ready to go.


1. SQM JV approval from the Swedish FIRB
2. Straight into a drill campaign - MT confirmed in the last webinar that drilling can be done year round, and may be easier in winter. I'm sure SQM's geos have had a good amount of time to identify some great targets
3. ???
4. Profit