@michelred I'm all for robust valuations - if there is an...

@michelred I'm all for robust valuations - if there is an underlying justification for that value.

Given its size, I suspect this is an in-ground value. The difficulty with in ground values is within Lithium there are usually significant strip ratios to deposits so a lot of waste rock needs to be moved in addition to the ore itself. There is also significant processing costs. These combine to mean the value of the project is a very modest percentage of the in ground value.

Interestingly your value does tie back to the potential revenue from fairly simple guess of the ore between RC22/DD24 and RC06-R08 PoW lines (excluding the main RC22/DD24 intercept from 200m down which may extend into this zone). A calculation like 400m between these PoW lines * 300m width * 2.7 density * 7m average nearer surface depth is 2.3Mt. Its pretty easy to get there being 2Mt of nearer surface ore over that area. If you had 2Mt of 1.4% ore with a 70% recovery rate that would theoretically concentrate to ore 327kt of SC6. At US$1,000/t and a 0.65 exchange rate that's $503m. I can therefore see at least this pathway to $500m value comments.

I'm pretty sure that CE of MinRes has done or had advisors do this sort of calculation. From this he has figured out that there's some serious money to be made in investing in concentration capacity that unlock high grade smaller deposits and buy ore, concentrate it and receive a robust margin on this for the service. At US$1,000/t or higher there is enough revenue value in high grade smaller ore deposits that if the constraint of funding a multi-hundred million dollar bit of plant can be removed, smaller deposits could be commercially mined.