When evaluating the potential scenarios for an upgraded Mineral...

When evaluating the potential scenarios for an upgraded Mineral Resource Estimate (MRE) for the Root Bay deposit, I like to approach the speculation with both optimism and caution. Here are my the best case and worst case speculative scenarios based on this announcement:

Best Case Scenario:

• Significant Increase in Total Resources: The updated MRE could reveal a considerably larger tonnage than anticipated, possibly exceeding expectations by 20%-30% or more, confirming the deposit as a significant source of lithium.

• High Conversion to Indicated or Measured: A majority of the Inferred resources could be upgraded to the Indicated or even Measured categories. This shift would increase the confidence in the deposit's viability and set the stage for more advanced project development stages, such as feasibility studies.

• Higher Average Lithium Grade: The average lithium grade across the deposit could be higher than the current 1.32% Li2O, making the deposit richer and more economically viable. A richer deposit could reduce production costs and increase profitability in the long run.

• Positive Infrastructure and Accessibility: In addition to resource upgrades, subsequent reports might reveal favorable infrastructure conditions, such as easy accessibility, proximity to processing facilities, and supportive local regulations, making the project's development smoother.

Worst Case Scenario:

• Marginal Increase in Total Resources: The updated MRE might only show a slight increase in total resource tonnes, potentially not justifying the costs of the extended drilling campaigns.

• Limited Conversion to Indicated: Only a small portion of the Inferred resources might move to the Indicated category, with a significant amount remaining in the Inferred category. This outcome would indicate that further drilling and exploration are required to increase the confidence level of the deposit.

• Static or Lower Average Lithium Grade: The overall lithium grade of the deposit might remain static or even decrease marginally due to the inclusion of lower-grade sections of the deposit in the updated MRE.

• Operational or Environmental Challenges: Subsequent reports or studies could identify challenges related to the deposit's development, such as environmental concerns, community objections, or logistical difficulties that could hinder the project's progression.

Given that I'm bullish on GT1, viewing it as the most undervalued lithium stock on the ASX, I am inclined to focus on the best-case scenarios.