Hi gassed I haveexpressed the same sentiments of confidence in the Chairman and CEO However nothing in the announcement indicatesthat the proposed conditional maiden estimate scheduled for release by end october could not have been released asindicated .
The additional areasaid to be the reason for the trading halt are relatively inconsequential inthe scale of thingsunless there is a problem with the Lilac cost report (below),
In the main the announcement served only to put caveats inplace on the timing and content of the announcement when it is finallyreleased..
The elephant in the room is the Lilac process. With itrecoveries will be high offsetting the low Li content. Without it evaporationor the possible (solvent extraction (?) alternative will result in lower recoveries and higher processing costsper tonne. Kachi would be at a significantcost disadvantage compared to higher concentration brines whether usingevaporation or SX. That might be OK in a critically under-supplied market when prices are high but that will not last forever
Reality Check (From the Exploration Target Estimate)
The number that matters is not the headline number of 8-17 million tonnes contained but how much can be recovered economically
Of the 8-17 million tonnes potential contained lithium carbonate 66% is rated “moderate” and “low” confidence and 33% “high”confidence
Discounting the low confidence and de-rating themedium to 30% the potential “likely case”recoverable resource may look something like this. Still good IF Lilac works
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The maiden resource report was to be released at the end of the October which would have been AFTER Lilac submitted their cost estimates. There was no mention of the Lilac report in Wednesday's announcement If those cost estimates were "problematical" that would be a reason for a rushed pause then halt to announce enlarged areas (to 'possibly" offset reduced recoveries without Lilac)
Disposal of Brine
It would be feasible to send the“used brine by pipe line aro 15 km or so to a high point and return it to the salar via a shaft. Howeverthere are 17 billion tonnes of brine in the salar and it is difficult toenvision any pressure on that volume.for many years if at all (a thimble full in a bath tub) OK if it can percolate into the brinereservoir and not back up in the shaft for too long
Partner Interest
We have thought that not manypotential partners have been aware of Kachi. I now doubt that this is the case.Every player will have every deposit in the world pinpointed on their wall mapand watching every announcement . The response to Wednesday's Kachi announcement wasindifferent. They all know the numbers. Lilac is the potential game changer notadditional leases.
IMO the penny has only justdropped that Lilac is questionable (they have only recently received a research grant) and Kachi is much longer term using evaporation or another alternative. Hence the rushed pause and trading halt,the inclusion of additional leases , heavily conditioned statements in the announcement and the fast tracking Caucharidrill results. .If Lilac was "go" the maiden report would have been released on schedule
Final thought
We are not the only ones attracted by the Lilac panacea. It is worth a visit to ASN on this site and read the thread Ann: Anson Produces Lithium Hydroxide Product
In the interest of transparency a statement of economic feasibility cost of the entire processing line including Lilac should accompany the Cauchari announcement if not before
All IMO, I have no technicalqualifications
(20min delay)