May I mention a few things? This is an extremely underexplored project that has never been tested at depth. Its neighbors, which have the same geology, have had their biggest hits at depths of 100m or more. Previously, this project was only drilled to a depth of 50m. The exploration that has been done so far was poor in my opinion. However, for the limited exploration that we have, a hit of 24m @1.4% (including some2% grades) is very good. Our last announcement included 4 hits of 20m or more and a 27m hit with visible spodumene over20%, so the grade looks good too. This is very impressive for only1 3 drill holes. We still have18 pegs that can be explored. Although this project may not be as successful and be a PL2 2.0, (let's be realistic here), we could still have a resource of 10mt to 20mt. The shallow hits and good depths show me that as long as the mineralization is continuous and we keep getting consistent hits of 5m to 25m (with even more at depth), this project has the potential for a 20mt resource. At $1mt, that is a15m MC, so that's $300m. That's my long-term outlook for this project.
Gallium and germanium could be the company maker. If we can get that going with this project, then anything can happen. When you mention that "the spod hits they found aren't the best," who are they? The previous work done on this project in 2016 wasn't done great IMO and was at a terrible time for lithium, and the quality of management was not as good as we have now. As I mentioned before, previous exploration was lazy, but now we have a clear and systematic plan to take this project to production.( if its the goods ).
I believe Canada is different. Conversion plants can be built in Thunder Bay, and the government here is putting a lot of emphasis on it. If a company is big enough, they can become a processor, or if they're smaller, they can provide raw feedstock to another production hub. I have been investing in explorers for a long time, and I know that a drill program takes time. CRR just hit74.4 meters after15 months of drilling. With our pegs, it's a50/50 chance, but the only way to find out is to drill.
Lithium is not easy to find, and geophysics offer little to no help. Lithium is difficult to explore for, but unlike gold and other minerals, you can't just get a "sniff" of lithium. Either you have spodumene in a zoned fractionated evolved pegmatite, or you don't. Even with confirmed pegs, it's still a50/50 chance. It's also a complicated process to break down the lithium to maximize profits. This is why we need experts in the field, and with our current management, WE HAVE THAT .
You need drill time to understand the structured orientation of the pegs. Canada has many thin, swelling, pinching pegs. This is different geology, and having shallow hits from the surface and hits of10m like we have is amazing. Show me a company on the ASX that has released 4 hits of 20m with those spodumene percentages at such shallow depths. You won't be able to. This project is so underexplored, and I actually disagree with you. I think the previous results, considering the limited work done, were fantastic. Geology changes quickly, and most tenements are huge, so it takes time to find the big pegs.I'm excited about this company, but I also know that it needs time. It needs12-24 months to really see what we have and give it time to find larger pegs and discover what Falcon holds. Of course, this is IMO and welcome aboard.
BM8 Price at posting:
51.0¢ Sentiment: Buy Disclosure: Held
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