lpd share price, page-52

@Thesi, the posts are piling up! Hard to keep on top of them all!

I've got a little bit of time now so I thought I'd start responding at least.

"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?"

Getting to the limits of my understanding of DMS circuits here, but I will answer as best I can.

Optical sorting and secondary flotation are just about fine-tuning how you separate the different minerals. Yes, the tailings will probably be mud as they come out, which is why you will often hear tailings are stored in a "tailings dam". Once it has been crushed and run through the flotation circuit, it's going to be wet and muddy.

I assume the spodumene is dried out somehow after being captured, but I don't know. I don't think you would bother drying out your tailings when you're just going to dump them, but the spodumene needs to be dried out.

The optical sorter comes in before the flotation, I think, and that seems to be what your helpful quote from Canaccord is saying: "Optical sorting: - Grade increase +6% Li2O: GXY is assessing the application of optical sorting to remove basalt contained within initial crushed ore..."

So the ore is crushed, then optically sorted to separate out the basalt that is in there, which is of no use to anyone. Perhaps this allows them to adjust the flotation liquid to a different specific gravity, allowing for better recoveries? I don't know, just hypothesising.

I am fairly certain the optical sorting would be useless after the flotation, as everything is going to be wet and muddy, which will discolour it. I think it has to be done dry, and certainly the videos you've shared all show that. Still don't know the significance of that.

After secondary flotation depends on what you've recovered. There's talk of middlings, fines and ultra-fines going on there and I'm not familiar with the Mt Cattlin flowsheet to know what is going where and when. But, in general terms, you're sorting for size and weight at that point. Trying to get the balance just right so that the rocks you want float and the others sink, or vice versa.

Just quickly on your last point there:

"The one thing that everyone expects is a massive amount of lithium produced by a converter straight off the bat.. But i'd be happy to see maybe 1,000 or 2,000 tonnes per anum and just sell it on the spot market."

I don't. I'm expecting 2500t the first year and then ramping up to 5500-6000t the second year, which isn't massive. I don't see how they can leave the first of the production to sell on the spot market either, as they're going to need offtake agreements to secure funding. I am also expecting the offtake to include some form of prepayment that helps fund the plant.

For the relatively small amount of capital expenditure, we want to avoid a CR at all costs, because a CR will heavily dilute our future earnings if the full-scale plants get off the ground. Sure, they might make a bit more money in the short term by selling stuff on the spot market, but I'd be concerned about the impact it would have on funding. Investors, particularly lenders, like to know there's a guaranteed sale waiting.

The one thing that everyone expects is a massive amount of lithium produced by a converter straight off the bat.. But i'd be happy to see maybe 1,000 or 2,000 tonnes per anum and just sell it on the spot market.

So why the testing?

As I said before, GXY have a bunch of mica at Mt Cattlin. If they can sell it to someone, that's a cost turned into profit. It goes straight to the bottom line. And LPD want to explore the possibility of getting another feed source without having to bother going drilling and mining themselves.

The WA acid situation

Yes, there is a nickel operation that could produce the acid, but the point is LPD would have to either pay someone to operate it. The stuff in Canada is coming from plants that produce it as a by-product and have to export it overseas because they can't sell it locally. LPD will be getting it cheap, much cheaper than paying someone to produce it for them.

Alvarroes and Separation Rapids

Alvarroes is an existing mine. LPD can either get Groupo Mota to do the mining, or do it themselves. We'll know more about how that works soon. The cPlant that I discussed in my earlier post in this thread is what LPD will build at Alvarroes as their flotation circuit. It's a lot smaller and a lot simpler than Mt Cattlin, because the mineralogy is simpler, I believe.

Separation Rapids is another story. I dunno about them. @surfarosa has pointed out how they've talked a big game and gone nowhere, and I think he might be right. I'm not relying on them to get much done. I think the next source of supply after Alvarroes will be Mt Cattlin.

This idea of a refinery in WA keeps coming back and I dunno why. I don't understand why people think it is a good idea. I'll try and break it down later, but I'm running late for dinner. Toodles!

PS - I haven't proof read because I'm running late. I hope it makes sense!