Short Term trading Week Starting: 31 Oct, page-577

STTCOMP KDR, FA Long

Lithium and Gold in Forrestannia region of WA

Mcap 174m @ 50.5c, Cash $17.3m  Company has drilled whats shaping upto be a huge high'ish grade world class lithium resource, at and south of, the existing Earl Grey Gold mine. Currently approx. 90 holes have been drilled with assays reported for approx 44 of those. The pegmatite/lithium is flat lying and 70-80m thick true width on avg. Strike is 1.4km and 750 and open in all directions except with grade avg 1.3-1.6% Li20 thus far.   The company has signed a mou with POS:ASX which looks at using idle POS nickel plant to process lithium and potentially off take lithium concentrate. KDR is looking to start production mid 2017. Heavy news flow is expected in the next 2 months some of these being:-

1. More high grade results from Earl Grey (Approx 44 holes in know mineralisation yet to be reported )

2. Step out drilling on the Earl Grey resource which is open in most directions to increase its known footprint.

3. Starting of drilling at Prince of Wales a few km along strike to the north reported to be peg intersection across a 2.2km x 340m intersections and shallow.  Days away.

4.  Announcement confirming aim to be in production in 7-8 months

5. Approval pending for drill program at Texas prospect (known pegmatite across 6.3km of known peg strike) also shallow

6. Metallurgical results due to be reported in the next 4-8 weeks from NAGROM mineral processing

7. 80+ hole drill program into the Blue Vein gold deposit to take it up to measured category current Jorc

8.  A range of supporting studies (planning, environmental, logistics and offtakes) are well advanced as part of scoping study preparation for mining at Earl Grey

9. Large and high'ish grade maiden Jorc for Earl Grey due in 4-8 weeks

11. Signed deal with POS:ASX re possible offtake and processing of Lithium   



Note: In the diagram below where "Pink blobs"  are confirmed pegmatite occurrence Earl Grey Drilling So far has been restricted to the Black Square only






Below, More recent updated diagram showing fatter targets (Green blobs) for Prince of Wales and Texas to the north...and look to be equivalent in size to Earl Grey in footprint ... so is it Earl Grey x 3 ?  These are the next to be drilled.