IMO, the accumulation is still going on because it's the best time (not for the scared people) as I said before.
Today, the accumulators are hitting the buy button again and again even though there are not good amount of shares at sale side.This will continue.
The accumulators look like they are happy to buy everything up to 15c IMO. I am pretty sure that someone is building a stake. It's close that we can get a notice of substantial holder.
These guys are very luck because this is the best time for them because a lots of people are scared of falling stock market due to Covid-19 panic.
Covid-19 is a little bit worse than flu, it's totally being used as weapon to get people scared by the media, financial and political manipulators.
Be careful about Covid-19, but be more careful about the viruses here who try to scare people.
Anyway, we keep drilling at KV project.
The results from yesterday's anns were showing us that we have thick and very high grade spodumene pegmatites at the feeder zone down to 450m. The company is calculating to mine them by using U/G mining methods. They could even mine it by open pit if they want to build a deep one which goes to 450m, but it would be more economic to mine it by U/G mining methods. The value of the deposit is very big down there.
That would be an easy U/G mining. It's not so deep, only 500m down. It's cheap to build a decline and a shaft to that depth. It's all rock down there. Not big dangers. (Spodumene itself is very hard, 6.5 hardness).
From yesterday's anns;
33m @1.8% Li2O from 402m, including 8.5m @2.5%
24.6m @1.8% Li2O from 363.2m, including 9m @ 2.3%
25m @1.7% Li2O from 266m, including 6m @ 2.7%
31m @1.6% Li2O from 297m, including 11.4m @ 2.0%
........
It just goes like that. I am not going write all of them. They are all outstanding high grade intersections.
Now we will focus on the drilling of NW section. Which we have much higher grades at shallower (200m) depths. We have 43m @3.1% Li2O grade. This zone is really outstanding. And it is still open.
We don't know the strike length there. We don't know how high the ave. grade will be.
This zone has been the biggest surprise for me. It's the best part of the deposit IMO. It looks like it's going flat there, however it might be going upwards as well. More drilling will reveal it. It's being done atm.
The KV project is still surprising us, giving us more and more.
The interesting thing is that; we were comparing KV deposit with KDR's Earl grey resource and benchmarking it with WES-KDR deal for finding its value.
KDR sold 90mt @1.50% Li2O resource to WES for $775m.
It looks like we will reach to nearly double of that, to 180mt soon. The ave. grade will most probably same 1.5% Li2O equivalent (with tantalum credits).
This simple calculation gives me a very strong confidence that we will be able to sell this deposit at around $1b which implies to 60c sp.
I explained before, the world economic situation does not matter for these type of Tier-1 deposits. They will always find its real value.
The KV deposit is unique. There is nothing close to it in the world in terms of being a Tier-1 deposit. (Tier-1 explained - Why is Kathleen Valley Project classified as a Tier-1 -
Post #:
43218877)
We have time, we have money, we can wait. No rush.
Nothing happens to these Tier-1 projects in the crises times.
They are being taken over by the big boys without any hesitation even at the worst time.
If the product of project is about a demand which will grow powerfully and if there is a background of long-term expectations then the acquisition can happen at the right value at any time.
(See Post #:
43391939
, BG Group CEO said the same thing in Oct. 2008 when they paid $5.6b for QLD Gas Corp. on Oct.2008 during GFC).
Kathleen Valley project is exactly about the same thing.
(20min delay)
