Plenty of action going on behind the scenes in Kidman land. Am I still bullish at $1.80+ ? Yes and yes, but invest responsibly, no don’t. The window of opportunity still exists, one reason amongst many is the soon to be released resource upgrade.
A back of the envelope Earl Grey lithium resource upgrade, based on current resource data, drill assay results/visuals from infill and extensional drilling released to date, approximate weighted calculated averages to date and other parameters reported by the company, IMO:
Strike has been reduced from the reported 900m to a more conservative 700m corridor or +1% envelope with an average thickness of approximate 70m and 40m for the down and up dip deposit extents.
The resource can be calculated by splitting the above deposit corridor into the two portions/down and near surface up dip zones to the south.
Zone A: The northern, deeper and larger down dip extent that averages 70m in thickness at a higher grade. Still open to the north and north east.
1350m down dip extent, 70m thickness, 700m strike @ 1.5% LiO2 for 178.6Mt, ~2.68Mt contained Li2O.
Zone B. The southern, near surface up dip extent that averages 40m in thickness, has a slightly lower grade than above, incorporates the 50m x 50m drill pattern (starter pit) and extensions to the east. Open to the east.
450m up dip extent, 40m thickness, 700m strike @ 1.35% LiO2 for 34Mt, ~0.46Mt contained Li2O.
Total approx. resource upgrade: 212.6Mt @ 1.48% LiO2, ~3.12Mt contained Lithium Oxide.
Current Resource: 128Mt @ 1.44% Li2O, ~1.84Mt contained Lithium Oxide.
Potential Resource Upgrade: >65% tonnage increase at a slightly higher average Li2O percentage and an increase in resource category to the right prior to a reserve release or possibly simultaneous.
Just one more reason why Kidman stock is being accumulated by the broking houses/Insto’s etc, February/March will be a most interesting time period with significant news feed imminent, including updated Broker reports. A possible reason why all previous broker reports have recently been deleted from the Kidman website.
Parameters are increasing on a number of fronts … Bye …
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“This leverage is only getting stronger by virtue of our purposeful strategy of not entering into offtake agreements to early in the advancement of Earl Grey”. … Mr. Martin Donohue, KDR MD, 29th November 2017.
You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right. ~ Warren Buffett
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