CXO on a pathway to lithium production - targeting late 2019...

• CXO on a pathway to lithium production - targeting late 2019
• Preliminary Feasibility Study (PFS) nearing completion

– Considering low-capex production of spodumene concentrate, for export from Darwin port
– Development of the high grade (1.5%) Grants Deposit initially

• Mining Lease Application and Approvals processes commenced
• Binding offtake agreement with Yahua (one of China’s largest lithium producers)
• US$20 million prepayment facility also secured with Yahua
• Resource upgrade at Grants and maiden resource at BP33 both imminent
• Significant potential to grow Resource base in 2018 across a number of high grade prospects

Are we going to get a very pleasant surprise with this PFS? Further processing has been mentioned too many times now. We will certainly have enough money from Yahua to build a small scale and scalable DMS plant. It will give us margins far greater than DSO. Hmmm. With BP33 as well looking high grade but a higher mining cost due to depth. But if we can further process to extract further value and offset these higher mining costs, as well as find more deposits with the small hills of cash generated.

Very interesting indeed.