Short Term Trading - Week starting: 19 Jun, page-269

STTCOMP CXO, FA LONG

SP: 7.6c
SOI: 375 mil
OPTIONS: 114 mil
MCAP: 28 mil

CXO is a Lithium explorer located in the NT.

After a successful drilling campaign last year CXO discovered high grade Lithium bearing Spodumene on almost all of its holes drilled and have announced yesterday that RC drilling has started one their biggest pegmatites "Zola"

Highlights of the company

-   Jorc resource of 1.5% Li2o 1.8Mt at "Grants"
-   Discussions advancing with customers for a DSO operation at Grants
-   Arguably Australia's closest Lithium mine to Asia (60kms sealed road to Darwin Port)
-   Heads of agreement in place with Darwin Port to export 1Mt pa spodumene DSO and 250,000 tpa of concentrate with room for expansion
-   Discovery of huge Lithium bearing pegmatites Zola and Ringwood swarms
-   $7.1 mil in the bank and zero debt

RC drilling has started on Zola with assays due July/ August

The Zola pegmatites were conservatively measured at 450m wide by 1500m long with management suggesting more lay under shallow cover.

"there is little doubt that additional mineralized pegamtites, conceal beneath thin laterite cover"

For comparison Grants is 20-30m wide by 200m+ long.

Zola was also compared to AJM 35mt last year (now 42Mt) deposit



Drilling to start next month at the "Ringwood" pegmatites

The Ringwood pegmatites returned rock chip samples 4x that of Grants high grade deposit.
There's is the potential of a few high grade "Zola's" in the Ringwood Swarm with Pegmatites up to 1500m long and hundreds of meters wide.
The magnetic survey is also suggesting that Ringwood could possibly be linked together and form one gigantic Lithium bearing pegmatite.
Ringwood's pegmatite swarms is in an area of 2km x 4km



The location, high grade and potential resource size cannot be over stated here.

Hartley's also giving it a 80-92c 12 month valuation with a 100Mt resource

Thanks

As always DYOR