Impressive drill results point towards significant resource upgrade at Maricunga lithium project
Impressive Drill Results Point Towards Significant Resource Upgrade
The company recently commenced a 16 hole exploration drill program aimed at increasing the size of the existing resource (574,000t LCE - 43-101). Results to date have been impressive as the grade has been maintained, whilst also extending the known mineralised zones both along strike and depth. Assay results will continue to be released over the coming month with a revised resource to be announced shortly thereafter (1H17).
Pump flow test work is also underway. This is a critical part of the Feasibility Study (2H17) as this is how the brine is extracted from the salars. LPI is well funded having completed a $13.5m capital raising in November 2016.
Analyst Comment: After returning from our recent site trip as well as results from the on-going exploration program, we believe that Lithium Power could be on the verge of a significant re-rating given the potential that is beginning to be uncovered at the Maricunga Project.
Whilst the existing resource has excellent grade (one of the highest grade brine projects in the world), the current size of the resource is modest. Exploration results to date however indicate that when the revised resource is announced (TSI estimate - April / May) the upgrade in size is likely to be multiples of the current resource. Most importantly we believe this resource will support a low cost, long life asset. We encourage readers to view our Virtual Site trip video above.
Chile: This was our first trip to Chile and we were impressed with the world class infrastructure (some of the best we have witnessed in South America), and the level of industry knowledge due to the importance of the mining industry for the national economy. In addition, Chile is also the worlds largest lithium producer (all brine operations), which should assist at project development time.
What about Brines? Lithium has been one of the hottest commodities over the past 18 months, which has seen investors quickly become educated in the sector - specifically regarding hard rock opportunities. However, the Australian market may have overlooked the vast potential of lithium's other major source - brines. Watch the 'What are Lithium Brines' video for an overview of the sector, as we discuss how brine projects are formed, where they are found as well as the factors that dictate economic viability of extraction.
The information in this email should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.
Valuation & Analysis: We are in the processing of completing our valuation on Lithium Power and it will be released post the completion of current drill program. We therefore have not provided a valuation at this time.
To view the video, please visit:
About Lithium Power International Ltd
Lithium Power International Limited (ASX:LPI) (FRA:24L) is a pure-play lithium explorer and developer, focusing on developing and fast-tracking to production the high-grade Maricunga lithium brine project in Chile.
LPI has a well known performing technical team with the experience to take the Maricunga project all the way through the development stages to production.
The regions that LPI is currently focussed on are:
1. Maricunga JV (Chile) – On 13th September 2016, Lithium Power announced the creation of a new JV to develop the world-class Maricunga lithium brine deposit in northern Chile.
2. Pilbara (Western Australia) – LPI has one granted exploration tenement and two pending exploration applications covering 203km2 in the Pilbara region of northern Western Australia. The largest granted exploration tenement is at Pilgangoora-Houston Creek is 2-3km west of the Pilbara Minerals (ASX:PLS) and Altura Mining (ASX:AJM) lithium deposits.
3. Greenbushes (Western Australia) – LPI has two granted exploration tenements covering 400km2 in the Greenbushes area of southern Western Australia. The tenements are adjacent to the world’s largest hard rock lithium mine owned & operated by Tianqi/Talison.
4. Centenario (Argentina) –Through its Argentinian subsidiary, Lithium Power holds a total of 6 granted tenements in the Centenario lithium brine salar within the Salta province of the Puna Plateau. In total, the 6 granted tenements cover an area of 61.52km2. In addition, there is 1 further tenement in the grant review stage.
With the exception of the Maricunga JV, all tenements are 100% owned by LPI or LPSA (including rights to the Centenario tenement which is the subject of review by the Argentinian mining authorities).
The Sophisticated Investor
Lithium Power International Ltd