Ann: Drilling Update at the Burmeister Lithium Discovery, page-252

@watchthisrise, So many investors are trapped in a timewarp back to the past. Jump back 5 years and Greenbushes was the dominant hard rock supplier. To have any chance of competing directly with Greenbushes you needed to be large, good grade and open pit with modest strip ratios. Back in 2019 the world was mining / refining around 330kt LCE from combined Brine/Hard rock sources. Since then world production has increased to 1,000kt LCE and what's economic has relaxed as the probability of US$1,000/t and higher prices increases. Greenbushes, Mt Marion, KV, Finniss are all exploring or implementing underground mining. The "too deep" comment typically comes from people locked in the past that all hard rock lithium mining will occur via open pit. If its a good grade, UG mining would appear able to work. If it didn't you wouldn't have so many operations exploring UG extensions or even fully UG mining of deposits.

The TG6 grades are great. Lots of intercepts around or above 1.5%. There's very little grade lower grade sub 1% intercepts. Accepted, primarily the intercepts are thinner, but I believe that can be addressed via technologies like ore sorters. Normally that wouldn't work but it might due to the other feature of consistent mineralisation.

The two killers for thin seams are recovery losses and dilution. If you can't have the surrounding mafic merging with the pegmatite, you might have recovery losses as the mine plan takes away part of the pegmatite and all the mafic to avoid any mafic entering the ore stream and raising the iron content. This leads to the view thin = non-economic. Sometimes you have wide patches of non-mineralised pegmatite. While mining pegmatite you collect a lot of non-mineralised pegmatite as well so while recovery is ok, there's a dilution problem. Again this prompts the view thin = non-economic.

At least so far, TG6 has the rare situation of consistent full mineralisation. This would appear to mean TG6 could mine the thinner pegmatite seam and some of the waste mafic on either side. This ore has great recovery of the mineralised pegmatite but a dilution issue. If this ore is put through an optical ore sorter, the black mafic can be removed (at least that's what GL1 showed). The dilution issue can be resolved by removing the black material. After the combination of these you have good recovery and minimal dilution ore. That's commercial ore, particularly if the grade is good. While TG6 ore often comes in thinner seams, I think it can be commercial if high to full mineralisation of the pegmatite and a sharp colour difference to surrounding waste rock continues to exist.

With the extent to which the price has fallen, any over-hyped comment is now odd to make. An 80% decline in share price will typically remove any over-hype that may have existed. Its probably rocketed TG6 down into the under valued category.

The fact remains, few explorers on Australian soil have 20-30 grade metre intercepts in the top 200m. Those that I'm aware of that do have much larger EV's than TG6 does currently. That suggests under valued not over-hyped.

If you look at the JORC results of Australian companies, only a couple break 1.4%. With the grades being reported, TG6 is showing the potential for what they have to be in that high grade range. Grade matters and the TG6 grades are good.

Mineralisation is being confirmed over a multi-kilometre strike length. Its not just a small few hundred metre patch. That greatly increases the chances that the best is yet to be found.