Hi Suge, I think ESS is an excellent, under-valued play and so is GT1.
A couple of bits where GT1 are very strong include:
The prospectus notes DMS recovery in the high 80%s (Prospectus page 295/305).
Commercial processes were producing 6.92% Spod with a 81.7% recovery rate. A ton of this spod would have a price premium of at least 15% to normal 6% spod pricing because of the higher lithium content.
Page 226/305 of the prospectus notes "Positive test results for both heavy liquid separation (HLS) and Dense Media Cyclone Separation (DMCS). Core is building a 1.1Mt capacity DMS plant for A$40m so the plant capital investment to get operational is likely to be low.
While the resource is 4.8Mt at 1.25%, this includes a lower grade at South Aubry. North Aubry blended result is 3.8Mt @ 1.38%;
The recent drill result is 1.54% so it appears the grade gets higher at depth;
The North Aubry resource is open in several directions including at depth;
Two of the recent DD's (#13 and #15) are almost vertical. They have a horizontal travel of only about 20-30m despite being around 350-400m deep. Given the intention to hit the ore resource at right angles, it would appear the target ore is flattening out which should assist open pit economics;
While further drill results are yet to be supplied, drills #12 and #5 appear almost certain to have hit target (but at an angle). That's why they straightened up the drill and went again to get another confirmation of what they hit. If either was a dud or poor, they wouldn't have bothered with #13 or #15.
Ta2O5 is a potential commercial by-product
There's a lot of prospects that GT1 has beyond North Aubry
The financials will struggle to be anything but stellar when produced given a low capex, high recoveries and high grade combination. This may result in a sped-up production timeline.
The current drill result ensures a resource upgrade because it was a step-out drill result.
Re recovery rates, the following is from 6 March 2019 announcement by ADV are the highest I've seen. And then on the next page:
GT1 Price at posting:
70.0¢ Sentiment: Buy Disclosure: Held
