Correction. That should read "and are ahead of KDR" not SQM....

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eshmun

12,259 Posts.

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01/08/17

01:46

Post #: 26201934
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Originally posted by eshmun ↑

It is a massive Li deposit, do you really think SQM have done all the met work and are ahead of SQM. There are still 215 samples to go to define the zonation of the deposit more carefully and by the company's own admission the X-Ray diffraction technique they are using is only semi-quantitative. Do I need to spell out what semi-quantitative means. Maybe you can look it up.

Also they state this in the announcement.

This indicated the lithium was hosted almost exclusively in spodumene in the southern portion of the resource where initial mining will take place.

A cursory look at the actual zonation model they present show zones of < 10% spod and 10-90% spod in the most southern 500m of the model and within the outline of the starter pit shown in figure 2, which would seem to contradict the above statement. Anyone looking at the model in figure 1 can also see that it is restricted to filament like strands running south-north and east-west which cross each other in a fishnet pattern. This is a clear sign that the model is incomplete. Even if SQM wanted they can't have all the answers yet. I note that ambiguous zones (10-90% spod) also occur centrally and in shallow parts of the deposit (see light blue tappering of the filaments running through the centre of the model). This model is far from complete or quantitatively rigorous. As far as SQM being able to pull the pin, you say that met dd is not a conditions precedent but have a look at how general one of those conditions precedents actually is. That should get people thinking just on its own. SQM will be waiting on finalised models and met results just like everyone else, why else would they give themselves so long to draft up this JV and consummate this deal. Esh

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Correction. That should read "and are ahead of KDR" not SQM. Sorry.Esh

KDR Price at posting: 58.0¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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