The focus of the ASX lithium sector switches in a big way in...

The focus of the ASX lithium sector switches in a big way in coming days to Quebec’s James Bay region.

The region is still dealing with wildfires in its western reaches but that is not going to stop the dual-listed Patriot (ASX: PMT) from releasing its maiden resource estimate for its high-grade Corvette discovery.

It is the one that was the subject of an attack from the activist short-seller mob Night Market Research earlier in the month when Patriot shares cracked $2 a share, pressuring the shorts in the stock.

Among other things, the Night Market report said the maiden resource estimate would only be 60Mt. Nothing wrong with that actually as a start as it would be twice the maiden resource estimate for the Pilgangoora deposit which has grown and grown to underpin the $15 billion Pilbara Minerals (ASX: PLS).

Having said that, those not short in the stock reckon the maiden resource estimate is going to be something much, much bigger than 60Mt. Not many sleeps now to we all find out, with Patriot confirming on Thursday that the maiden resource estimate was scheduled for release in late July.

And here we are in late July. Patriot shares have traded down to $1.55 (the Canadian stock is $C13.74) since the Night Market attack notwithstanding calming words from Patriot, which has the guy who built Pilbara into the company it is today, Ken Brinsden, as its chairman.

Brinsden has described the Night Market report as outrageous, and inconsistent with the facts. “It is really a significant discover,” he said.

The company itself said the maiden resource estimate was expected to be large-scale and high-grade when benchmarked against other hard rock lithium projects globally. That would put it in the 100Mt to 150Mt category.

If that is the case come no later than Monday (July 31), watch the shorts in the stock burn. Care factor for them? Zero.

https://resourcesrisingstars.com.au/blog/patriot-s-imminent-lithium-resource-could-see-the-shorts-taken-down?RID=578&ListPageUrl=https%3A%2F%2Fresourcesrisingstars.com.au%3A443%2Fnews%2Fall-news