lpd share price, page-39

Hi @Sharpey,

You have raised some salient points in your analysis, and I appreciate your explanation of flotation. It is refreshing to find someone on here that is actually analyzing the potential, rather than... "Are we gunna go up or down?" - Not hard to understand why the LPD crowd respect you.

"My understanding is that Mt Cattlin is getting some shiny new upgrades to extract even more spodumene from the mix, operating from Q3 this year. Why more collaborative testwork?"

Something that has not been discussed in great detail as far as I am aware is that of secondary flotation at Mt Cattlin, and also optical sorting. I have wondered if this is a part of improving the quality on both sides of the equation, particularly based on the conversation yesterday which referred to the waste being mud etc.... - I am curious what you make of it?

"to improve the capacity and efficiency of the processing plant including an ultra-fines DMs circuit; a secondary float re-crush circuit; and a final product optical sorter that will target even higher recoveries of 70 - 75%" Bell Potter

"Management has noted that it is currently assessing a number of opportunities which, if successful, could result in substantial increases in production. These include optical ore sorting to uplift concentrate grades, recovery of spodumene from DMS middlings (currently being stockpiled) and treatment of fines material via lower capex/cost classification/screening." Canaccord

"Optical sorting: - Grade increase +6% Li2O: GXY is assessing the application of optical sorting to remove basalt contained within initial crushed ore in order to uplift concentrate grades and potentially lead to premium pricing. It is expected that this opportunity will be evaluated as part of the redesign of the crushing circuit currently underway for implementation in H2’17." Canaccord

"Commenced evaluation for an ultra fines DMS circuit, secondary float re‐crush circuit and a final product optical sorter targeting an increase of recoveries to 70‐75%" Galaxy Resources 2017 Q2 Results Presentation

All of the above indicates that it is purely to increase recovery, and it might be as simple as that... but then we go back to the question of why Lepidico tested the tailings of Mt Cattlin?

For those that are unaware how an optical sorter might operate, I found this video of one that is used for grapes.



One more thing...The issue of having Sulfuric Acid available for the process in and around WA...

Maybe here is a solution?

Martin Rowley the Galaxy Resources Chairman I am guessing would know very well that there is availability of Sulfuric Acid, right on the doorstep of Mt Cattlin, at an unused operation Ravensthorpe Nickel Mine owned by First Quantum Minerals that was closed in Q3 2017. It just happens that Martin stepped out of his role with that company around May that year.

"Operations at Ravensthorpe involve open pit mining and beneficiation of nickel laterite ore, pressure acid leaching, atmospheric leaching, counter current decantation, precipitation and filtration to produce a mixed hydroxide precipitate product, containing approximately 40% nickel and 1.4% cobalt on a dry basis. Sulphuric acid for the leaching process is produced on site in a 4,400 tonnes per day sulphur burning, double absorption acid plant, with waste heat being recovered to produce steam via three 18MW steam turbines, for the generation of power and to provide heat for the leaching process." First Quantum Minerals

I am guessing this would be able to supply plenty of acid for the process, it would be just a matter of owning, or leasing it.

Ok, and one more thing... How guaranteed is the feed stock from these other potential suppliers.. As in... Are their mines built and operational? - Do they have plans to integrate similar type flotation and filtration to that of Mt Cattlin?

We hear talk of Separation Rapids, and also Portugal being preferred feed sources.. but I don't know when they will be online... What happens if they don't come online with the quality that is required for the process to work?

I don't see Lepidico as a miner... I see them as a company that is focussed on the art of conversion, and targeting supply sources that would generally be ignored.

One of the key things that tweaks my interest for Lepidico, is that of its ability to make use of tenements that other companies find entirely useless which reduces the value of that land and the price that Lepidico or its partner would need to pay for additional supply sources.