Ann: Exploration Drilling - Mt Cattlin North Project, page-34

Interestingly - poster '8horse' posted some charts of what happened to Lithium hopefuls price action when drilling started - and the period during the drilling campaign.

https://hotcopper.com.au/posts/28819415/single

Worth a look to see what is possibly in store for TKL when GXY starts drilling...early Q1 2018??

Particularly as GXY will probably require more ore to satisfy expected increase in demand and to add to the LOM of operations approximately 1 km away from GXY current operations at Mt. Cattlin.

Considering TKL owns a 20% stake in potentially an equivalent or even better lease that is very prospective for Lithium only 1 km from and on trend with GXY Mt. Cattlin deposit - I would expect at least the same sharp movement in the TKL price.

A few points that may mean SP performs even better than a normal drilling campaign ... if successful

1) GXY has already identified this area and invested heavily to mine there.
2) GXY is mining and processing 1 km away so 95% of infrastructure is already opertaional.
3) GXY current operation at Mt Cattlin most probably has the same deposit composition so that no or little variance to the current operation will be required - possibly some additional trucking of ore.
4) The main factors affecting the profitability of mining the lithium on this lease will be depth and grade.

If this was a 20/80 JV with TKL free carried but starting from scratch - I wouldn't be too excited, but the current position that TKL is in here is potentially a very short lead time to production should GXY wish it.

In the later stages of Q1 2018 (end March) some initial indications should be released, anything could happen from there if the drilling results show a similar or better grade than the current operation.

PLS example of the timelines between drilling starting and 1st price sensitive update was under 4 weeks.

PLS announcement links below...

https://hotcopper.com.au/threads/2397192/ - 06/11/14 https://hotcopper.com.au/threads/2414919/ - 01/12/14

SK60