Haven't posted much because this Ann speaks for itself - another good stepping stone that provides further weight to my views posted earlier this month in italics below for LRS. Some good grades, high brightness, low impurities again, another tick.
As to this continuous debate between ADN and LRS, I will again repost the following written early April -
Reflecting on the above, I still think the lithium and Peru project are also interesting in themselves (which by definition essentially implies LRS has diversification potential if the drill bit works in our favour there).
Furthermore since that post, I still see this debate between LRS and ADN also as irrelevant given there is ample scope for a number of new kaolin/halloysite entrants into the market given the need for a number of new deposits to be developed to meet rising demand - which I went through in this post around demand conditions if others are interested
Post #:52473769Whilst development wise ADN may be in front given its PFS, the fact that LRS has found something worth pursuing/evaluating still means it can still be considered a 'first new mover' in this area, if ADN is considered the first mover. Albeit LRS can also leverage of ADN learnings so that it can ensure it gets to market at a faster rate than ADN (i.e. here I mean from initial discovery to evaluation and hopefully from there to offtakes/funding/mining, noting ADN is still at this latter stage btw noting it still needs a few more ticks as I posted there a few days ago before mining can start at the slated 1st half 2022 production start date). At the end of the day, if LRS has a viable resource, and feasibility studies will determine that, and noting shortfall scenarios, LRS could potntially be in production sometime between 2023 - 2025, but this depends on LRS only by continuing to tick boxes, rather than SHs worry what ADN is doing.
There are not too many prospective halloysite/kaolin deposits around, so LRS should just wipe out the noise (as should LRS shareholders) and just focus on ensuring that it remains ahead of (most of) the pack given its drilling is showing very good potential. Noting the near surface nature of the deposit itself is more akin to a quarrying operation in production at 'mine site' (i.e. read low cost potential operation at mine site based on looking at ADN PFS btw which also has a near surface deposit). Can leverage of ADN learnings such as i.) wet versus dry processes etc etc noting ADN started with a dry process before switching its PFS to a wet process, ii.) having strategies around water and water use and iii.) etc etc, which are all learnings one can take from looking at the ADN Anns, albeit they need to be leveraged by LRS to the local operating environment in WA (albeit process wise there may be some consistencies etc etc)
On a final point, too me the key is around Market Cap, not SP, so LRS does have some further upside potential btw IMO as well (if any comparisons are to be had). Having said that, as also a ADN holder I am not a fan of inground value as I posted over there in the past, which I know some ADN posters are quoting here, because ultimately value long term is around what is actually produced and what actually goes to market. Obviously with a large resource ADN has opportunity to go to market with a high production configuration, but ultimately the market needs more than one new entrant and that makes IMO LRS also a good investment.
The reason as to why I am not a fan of inground value, is because inground value has no long term value IMO too me if there is no prospect of mining, or mining is slated for many many many years down the track (and the market ultimately catches up with that). A simple example, you have a huge resource but the market believes wont be mined for 10 years plus - what is its value compared to a smaller resource that will be mined next year? The latter will have a higher value. So getting to market the key for both deposits and that is where the comparisons end IMO - refer italics above again.
LRS needs to make its own journey, and the journey to date with this koalin/halloysite discovery has been rewarding. Will it be a company maker - the next stage is get your MRE sorted to do feasibility studies so time will tell, but I am hopeful and confident.
With that time to have a VB, since the one I just had dried a while ago as I was writing this essay.All IMO IMO IMO IMO
(20min delay)
