I think the market will find it hard to value this currently.Do...

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jomat123

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06/09/22

21:53

Post #: 63553114
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Originally posted by Weally: ↑

"I think it is clear from photos that there is something substantial here" - my above post.

Another group running an email scheme also seem to believe the above statement. However, they have made some bizarre claims that include a "bull case" of anything above 1.5% lithium, which you would hope they would have some basic understanding that it is lithium oxide (Li2O) rather than lithium (Li). Again, with the surface mineralisation it would be almost guaranteed that some arbitrary shallow unit of measurement (~3-5m) from surface will grade over 1.5% from the photos alone. It would appear they have purposely set the Li2O expectations low so they can produce more low-effort content when assays are released. Realistically, it is likely that these pegmatites may grade similarly to LRS's pegmatites in South America with intercepts above 2% Li2O as TYX have estimated spodumene compositions ranging from 15-50% in hand samples, however it is the depth of that mineralisation that is unknown and that is the key takeaway. A more realistic bull case scenario should be intercepts larger than 20m @ 2% Li2O, a base case at an arbitrary unit of measurement at 1.4% Li2O, and bear case anything grading below 1% Li2O.

Further, it is evident they have put very little thought into developing this "thesis" of theirs when you critique their first risk, which should logically be the most significant. They have regurgitated the company's claim for "high grade spodumene" but then gone on to say a key risk includes the pegmatites may not host recoverable lithium grade. Did the author not look at the photos where the pegmatites contain metre wide, unaltered spodumene at surface down to roughly 5m? The key exploration risk is that the pegmatites do not extend to a significant depth which translates to a non-economical tonnage. I will reiterate that again, it is now not about if they find lithium, but how much.

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I think the market will find it hard to value this currently.Do the market wait until the drilling shows results or price it already to have a good resource underneath,the way the chart progressing suggests the market is backing it to win.lets hope they only found the tip of the iceberg.My search for viable lithium resource in Australia has actually landed me in Angola.

Last edited by jomat123: 06/09/22

TYX Price at posting: 4.4¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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