Resource upgrade surpasses expectations whilst investment in lithium sector picks up
Lithium Resource Upgrade Exceeds Expectations
Highlights of the announcement include:
- 270% increase to the JORC resource - 2.1Mt Lithium Carbonate Equivalent (LCE) and 5.6Mt of Potassium Chloride (KCl);
- Grade - 1,163 mg/l lithium - remains one of the highest grade brine projects globally;
- Exploration target - 1Mt to 2.5 Mt LCE & 3Mt to 6.6 Mt KCl;
- Pre-Feasibility Study - 4Q17.
Analyst Comment: The Maricunga project in our opinion is fast becoming the standout development lithium brine project globally. This resource upgrade (2.1 Mt LCE) was an excellent achievement and surpassed our previous expectations (1.5Mt LCE - TSI estimate).
Importantly the increase in resource size was not at the expense of the projects exceptional grade (1,163 current vs. 1,250 previous), as Maricunga remains one of the highest grade lithium brine projects globally.
We believe this resource is more than sufficient to support a long life operation (TSI estimate - 26 years), and will underpin the Pre-Feasibility study which will be released towards the end of the next quarter (4Q17). Full details of our analysis as well as an update on the lithium market can be accessed by clicking on the button below.
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: We increased our valuation from $1.10/share to $1.24 / share (SP $0.33 / share). This increase was due to an expansion in our mine life assumption.
The information is general information only. Any advice is general advice only. Neither your personal objectives, financial situation or needs have not been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice. Adam Kiley (AR No. 458224) is an authorised representative of Intelligent Financial Markets Pty Ltd (AFSL No. 426359).
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About Lithium Power International Ltd
Lithium Power International Limited (ASX:LPI) 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 focused on are:
1. Maricunga JV (Chile) – Located within the "Lithium Triangle", Maricunga is Chile's highest grade and most advanced lithium project outside the Salar de Atacama. The project lies 170 km northeast of Copiapo and 250 km from the port of Caldera.
2. Pilbara (Western Australia) – LPI has three granted exploration tenements covering 203 km2 in the Pilbara region of northern Western Australia. The largest granted exploration tenement is the Pilgangoora tenement which is 2-3 km 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 400 km2 in the Greenbushes area of southern Western Australia. The tenements are adjacent to the world's largest hard rock lithium mine owned and operated by Tianqi/Talison.
4. Centenario (Argentina) – Through its Argentinian subsidiary, Lithium Power holds a total of seven granted tenements in the Centenario lithium brine salar within the Salta province of the Puna Plateau. In total, the seven granted tenements cover an area of 68.46 km2.
With the exception of the Maricunga JV, all tenements are 100% owned by LPI or LPSA (including rights to the Centenario tenements).
The Sophisticated Investor
Lithium Power International Ltd