on lithium acquisition

Hi guys, here is some preliminary comments on the newly lithium acquisition by bass metals :

1-This is a highly valuable pegmatite rock hosted lithium deposit, and not petalite (less valuable).

2- Rock chip lithium samples show an exceptionally extremely high grades of up to 6,9% (if you look at other spodumene lithium deposits around the world, you would hardly find anything higher than 4.5% - 5.0% samples). If a lot more similarly high lithium content samples could be extracted from the same zone and scattered everywhere, we may be talking here about a huge high grade lithium discovery in the making (it is too early to tell though with just 8 samples)

3- The samples are scattered and found within a large permitted exploration zone (10km * 2.5km). It seems multiple pegmatite dykes have been identified within this zone with up to 50m in thickness and hundreds of meters of length. If drilling confirms grade and continuation at depth of the lithium mineralization, this could result in a huge size deposit (tens of millions of tonnes of pegmatite ore).

Quote :
"A majority of the pegmatitic dykes and sills within the mining permits are over 10 meters in thickness, with swells in areas of up to 50m in thickness, while being up to several hundred metres in length." End of Quote

4- The spodumene crystals are of milky white (very low iron content) to pink-violet colour (more iron ore content), hosted in the core of a Li-bearing pegmatitic vein. The lithium market prefers less iron content, especially for (Direct Shipping Ore), so it remains to be seen if the deposit contains or not large amounts of lithium with low iron content suitable for low cost direct to market ore shipping (no need for a processing plant, just crushing, bagging and shipping). Again if the high grades are confirmed for a good chunk of the deposit (2%+ zones), this could be a huge extremely low capex and high margin commercial opportunity for a DSO operation.

5- It seems the deposit is fully prmitted for "exploration + development". that is HUGE and adds extreme value to the project if confirmed. Permitting could take years for other projects, it is an expensive, time consuming and complex uncertain process. Fully permitted projects helps financing and allow fast to market strategies. If the grade and size are confirmed, this could be a cash cow for Bass during the coming years. Verifying the viability of permits is a priority for Bass due diligence process to close the deal.

Quote :
"The permits are Exploitation Permits suitable for mining. They are subject to confidentiality demanded by the Vendor until completion of the Transaction.

• The Vendor assures permits are in good standing, and all statuary approvals are in place to conduct exploration and exploitation activities throughout this permit area, including mining. Bass Metals will make this a priority in the due diligence to be completed in the 3-month exclusivity period." End of Quote


Overall, I am very excited about this lithium acquisition in Madagascar, its a smart move from management leveraging its presence in Madagascar, that may turn out to be a game changer for the company, if a sizable high grade deposit is confirmed (we are talking hundreds of millions of dollars of face value for these kinds of rare deposits).

Hope that helped,