WR1 General Discussion, page-80

Definitely would be valued higher being on the ASX without a doubt.

Cancet in my opinion will be the first to be in production. It is the most advanced and although Decelles has year round road access in place and is close to Val'd'Or, so isCancet, it is metres away from the highway.

Cancet will have already 7000m of drilling and geophysics completed in a couple of weeks. Previous favourable met results. planned MRE in less than 12 months, followed by a scoping study.

The tenement of Decelles will require field work, geophysics and the share size of it will take time to identify targets. When they bought the tenement they effectively doubled their landholding in Quebec with this purchase.

I agree @seaemay. Out of everyone at the helm Chris Evan's is one of the best. He's humble, he is part of a company that consults others on how they should construct mining operations. He was key in developing two of the biggest hard rock deposits in the world. Goulimina and Pilgangoora.

I think $1.50 is conservative for a 17month time horizon. current shares give or take is 150m including performance rights to directors. at $1.50 Winsome would be 150m market cap.

I'm expecting WR1 could be atleast double that over that time frame, and i'll explain why.

Sigma Lithium just updated their feasibility for phase 1 only one week ago. This to me seems the most comparable to Cancet.

PLANNED PHASE 1 PRODUCTION AND ESTIMATED PHASE 2 SCALE UP

Updated Phase 1 Feasibility Study base case to produce 230,000 tpa (34,000 LCE) of 6% Battery Grade Sustainable Lithium for 8 years.

After-tax NPV of Phase 1 (standalone): US$1.6 billion (potentially increasing to US$1.9 billion).
After-tax IRR of Phase 1 (standalone): 424%.
Payback period of 4 months.

8 year LOM

Phase 1 is financially robust as a standalone operation even before factoring in a potential Phase 2 production expansion.
Optionality to increase Phase 1 production to 265,000 tpa of Battery Grade Sustainable Lithium, in line with current market specifications, with the following NPVs:

@ 6.0% Li2O: production of 230,000 tpa, NPV of US$1.6 billion.
@ 5.7% Li2O: production of 242,000 tpa, NPV of US$1.7 billion.
@ 5.5% Li2O: production of 251,000 tpa, NPV of US$1.8 billion.
@ 5.2% Li2O: production of 265,000 tpa, NPV of US$1.9 billion.

Free cash flow (FCF) came in at a whopping 273m US a year equivalent to 371m AUD!

AUD 2.17B to 2.57B

The average or feed for their Xuxa deposit over the life of mine is 1.55% Li2o
Cancet are targeting a grade of 1.0% to 2.0% Li2o.

Here is what Sigma used for up to date pricing

The lithium prices forecasted are based on the Benchmark Mineral Intelligence curve of battery grade lithium hydroxide (LiOH) shown in Figure 2, with the price of the lithium concentrate (SC6) calculated based on a fixed percentage of 7% of the LiOH price. This results in an average weighted lithium concentrate price of US$1,954/t over the 8-year period. with the price of the lithium concentrate (SC6) calculated based on a fixed percentage of 7% of the LiOH price. This results in an average weighted lithium concentrate price of US$1,954/t over the 8-year period.

This study only incorporates proven and probable reserves of 11.8Mt at 1.55% Li2o.

The study itself doesn't include additonal resources as it targets the high grade stuff.

The actual resource estimate

0.5% Cut off

Measured+Indicated
17,414,000 1.55%

Inferred
3,802,000 1.58%

Cancet looks to have a few Mt already and I believe could easily achieve the same size deposit following the MRE.

Both Cancet and Xuxa start from surface.

Cancet will have had 7000m drilled. Xuxa has had 13,000m drilled so almost twice the amount of drilling but the deposit is much deeper.

Drill results of Xuxa



Cancet

As you can see Cancet hasn't been tested at Depth and we are waiting on results from the ongoing drill campaign.

Both Cancet and Sigma have access to renewable energy making it a low carbon operation as well

I'll admit that maybe labour costs are quite a bit lower in Brazil than in Canada.
Cancet is much flatter/ shallower and still hasn't been tested at any real depth yet.

Mettalurgy is brilliant of both deposits

Cancet Heavy Liquid Separation (HLS) tests on composites crushed to 10mm and 5.6mm showed that Dense
Media Separation (DMS) at SG 2.8 could recover 89% to 91% of the lithium at a grade of >6.4% Li2O in 19% of
the DMS mass or 16.6% of the overall feed mass
Cancet hosts a clean pegmatite with low iron oxide in assayed drill samples (0.5% to 0.8% Fe2O3)

Sigma XuxaThe flotation tests conducted showed that the combined DMS middlings plus 850 µm screen
undersize product (stage ground to -300 µm) could be upgraded from ~1.40% Li2O to >6% Li2O,
with ~80% lithium stage recovery. Of the spodumene collectors tested, a mixture of FA-2 and TPA100 at a rougher dosage of 500 g/t appeared to deliver the best performance in terms of
concentrate grade and recovery;
 Batch flotation test F5 demonstrated that the use of a coarser grind size for the flotation feed
(500µm) may lead to an improvement in both mica and spodumene flotation performance;
 The combined concentrate from the DMS test and a locked-cycle flotation test on the DMS
middlings product plus the 850 µm screen undersize product (stage-ground to -300 µm feed)
graded 6.29% Li2O at 86.0% lithium recovery, in 25.7% of the feed mass. The key source of lithium
loss was the DMS tailings, which accounted for 8.6% of the lithium in the feed. These results
support further investigation of the DMS + flotation flowsheet for the beneficiation of spodumene
from the Xuxa deposit.

Winsome is conducting further testwork now

The key thing here is they both are 2 stage, both have the ability to use a coarse grain size and both have excellent results that exceed battery makers specifications.

Of course there will be variances, and Winsome still needs to get a MRE of 20Mt around 1.4% at a 0.5% cut off but as this the exploration target then it could be a very real comparison to make.

Spodumene prices now are

Spodumene Concentrate(6%,CIF China), USD/mt
Li2O content 5.5%-6.2%
$3255 USD

$1300 USD higher than what Sigma used in this study.
Their opex was only $450ish per tonne


Say Winsome achieve the deposit size I mentioned above and the scoping study is released. In fairness probably around that timeframe of 17 months.

Let's say Winsome should be trading at 15% of NPV as it is a scoping study, not a PFS or DFS.

That gives a market cap of 325 - 385.5m AUD

Or a share price of $2.16 - $2.57

From 50c now - a gain of 334% to 414%
This doesn't take into consideration higher spodumene SC6 prices which are already higher and set to remain elevated until 2025 and already $1300 USD above what is used in the study.

It doesn't take into consideration Winsome's projects Adina, Sirmac or Decelles as having any value whatsoever.

It also doesn't take into consideration the extremely high Tantalum grades that if mined would make Cancet even more profitable.BUT it does rely on Cancet being in the range of 17 to 20Mt and of a grade of 1.5% Li2o which is yet to be proved up.