Some thoughts on the qtrly, for those interested:
The Company continued progressing the 2,000tpa facility commissioning works, which have
successfully completed 24-hour trials of continuous operations and produced ~20 tonnes of
battery quality lithium carbonate product to date, attaining an average product quality of
99.79% (and up to 99.9%).
Awesome news. A massive (and greatly undervalued here imo) milestone to have the complete plant running as a system, as opposed to commissioning/operating various sections independently. As others have mentioned, tonnages to-date not really that important, as the focus is on the function and system integration, quality of product, etc.
Upcoming works involve increasing the periods of continuous operations during the
commissioning phase and finalising standard plant commissioning processes, on the path to
achieving fully continuous production operations and leading to ramping up production
operations during H2-CY2023.
Great. Working steadily toward fully continuous production. A lot of things need to align for this to occur, and the team seems to be working though these methodically and successfully to-date. The coming months will be exciting imo; it's been many years getting to this stage! They basically have one chance to get it right, with very few Li brine precedents, ever. It takes as long as it takes.
The 10,000tpa operation regulatory approval process is progressing toward completion, with
the Company submitting updated hydrogeological information requested by the regulator
to finalise their EIA works process and grant formal approval notice from the Mining
Secretary. The regulator has not provided a timeframe for such, however the Company
maintains regular engagement with the Salta Mining Secretary’s department to expedite
official approval receipt.
Sounds like the company is doing what they can to facilitate these approvals. They have provided updated hydro info as per previously-mentioned "queries" by the regulator. Timelines are unknown but sounds like we are at the tail end of an unnecessarily drawn out process. No big deal imo, afaict it has minimal impact on our actual current activities. Regular engagement continues. Good.
The Company continues to progress applicable pre-development works for the 10,000tpa
operation including - planning and scheduling, engineering and design, procurement,
contractor process, recruitment, renewable energy/power sourcing arrangements, and
industrial water drilling operations.
The company has full confidence in the expansion being approved, imo. The are progressing key activities "within the law'" so to speak (i.e. what they can do without approvals), so they can hit the ground running when the time comes; at which point it looks like they will have the plant dialled in and therefore more freedom to focus resources on expansion works. Never underestimate the process and importance of recruiting and training key personnel, imo. Our 2ktpa plant stage has facilitated that very effectively imo and allowed critical momentum to continue whilst securing funding etc for larger scale operations.
The production well rotary drilling program was completed, with two production wells drilled
to depths of 350m. Pump testing and brine sampling works have been completed for both
wells, with results awaited. These works will facilitate the preparation of a brine Mineral
Reserve estimate and subsequent completion of an upgraded feasibility study.
Very interesting. It seems that a reserve estimate will be built incorporating the data from these two new (and much deeper) wells. This should, imo, result in a very positive outcome, considering the depth increase (100m-350m). Awaiting results of sampling, and will feed an upgraded feasibility study. Sounds like the analysis and feasibility study is lined up for completion later this year(?). Good stuff.
The exploration diamond drilling program is progressing, with five drill sites completed to
date and the sixth (and final) site is currently being drilled. Current core and brine samples
collected to date have been sent for laboratory analysis, with results awaited. These results
will facilitate the preparation of an upgraded brine Ore Resource estimate scheduled for
completion by late-2023.
Some diamond core and brine samples undergoing analysis; more to come. Five sites drilled, one to go. Great.
Upgraded resource estimate expected this year. Great.
The key aim of the drilling works is to increase the current JORC Indicated Mineral Resource
estimate, production capacity and operation mine-life.
Based on previous comments from the company, it seems they are aiming for ultimately 25ktpa. If this is achievable, it seems likely that it will step from 2ktpa to 12ktpa to 25ktpa, as per prior company info. This would be great. I posted some economic modelling on such a scenario on the weekend. $$$
Btw, who knows what the strategic partner has in mind....? It is arguably reasonable, imo, for a partner to potentially want to push straight to 25ktpa, if the resource is there and the processing solution proven.... hmmm getting close to confirming both these things, so it will be interesting to see how it all unfolds. In any case, +10ktpa and then +13ktpa would be faaaantastic.
Not advice
IMO
DYOR
(20min delay)