Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I thought we were due 12 RNS by EoY, so after today’s very positive one And the AGM one, there’s still ten to come. (Which will be be the biggest?)
I’m not sure about LTH selling on news. I tried it once when I first bought in and got burnt as another RNS came along quickly and I ended up paying more to get some of my holding back.
I have a trading account with IRR in but it’s sitting on 12p average so I’m letting that run.
To be honest if people can trade it then fair enough but one day they’ll get caught out on a Rerate and or BIG news imo.
This is an exciting bit below imo.
“Drilling to date at Ehuasso has intersected both narrow high-grade and broad low-grade intervals within both weathered and fresh zones. Our early ounces strategy is to target weathered oxide mineralisation, with initial observations suggesting it continues to average depths of 50m and up to 90m, suggesting simple mining and processing at low operational and capital costs”
I love this #EarlyOuncesStrategy because that’s where the money is with low Capex and Opex. Simple open pit mining, generating income across the strike length and we’ve only drilled 10%.
50,000m of 3rd phase drilling and we’re going deep. Why because the gold at surface indicated there’s something lower below 90m as do some one the drill results to date.
Look at this too “With only 12km of 47km of potential strike having been drill tested to date, we have already uncovered three exciting target zones - Ehuasso, Yakassé and Ebilassokro with additional targets M’Basso and Coffee Bean/Super Pit - complementing an additional untested 8km strike of hard-rock artisanal workings and 27km of untested soil anomalies to deliver a pipeline of further discoveries.
“The third phase 50,000m combined AC and RC programme is now well underway with three drill rigs active on site.”
So possibly 4/5 open pits simple mining with low Capex snd Opex. Got to love the strategy to get the most out of the bulk at lower grade while drilling deep for mineralisation, veins and hot spots,
How deep are we drilling? 150-300m ? Have I missed that or 400m?
5m at 33.63g/t from 138m in hole ZARC0013 just one from a number of them that indicates we should drill deeper imo.
Once people outside of the IRR bubble really start to understand what’s coming over the hill, I think it will be very interesting.
The Lithium is worth considerably more today than it was a year ago imo. The scale and quality we have will run out of supply in 18 months. Which auto company will move upstream?
The gold isn’t valued properly at all. On April 2nd 2019 all assets in Côte d’Ivoire (both gold and lithium) were valued at £19m. That valuation seems incredible now given the results that have been delivered this year and what’s due to come from the three drills turning currently. Sit back and wait.
I can’t copy the tables into here but follow the link to the SP Angel report and look at the Operational Summary covering different scenarios.
I hope all this helps, apologies if it doesn’t. I’ve been focused on Brines recently but IRR is compelling imo. https://static1.squarespace.com/static/5850d36af5e2319124a237b6/t/5ca229ba93088700015a93f0/1554131397044/IronRidge_Initiation_Note_April_19.pdf
I do think this picture is changing and the previous valuations may need updating as the Lithium squeeze increases.
It’s certainly an exciting time. IRR is still under the radar imo. Again it will be interesting to see if it even gets a mention on the Benchmark Summit. Yet Africa is well positioned to supply the European supply chain.
This is from the Research Report by SP Angel prior to the JORC being published. The actual JORC of 14.5m/t @ 1.21% Li20 (with 4m/t @ 1.39% Li20) was above their projection.
Key takeaways
• The highly encouraging second-phase drill campaign assay results complement preliminary geochemical and geophysical data to define a broad host of pegmatite swarms; delineating a maiden JORC-compliant Ghanaian Cape Coast Resource with target 12-15Mt @ 1.25% Li2O (SP Angel estimate).
• Coarse spodumene intersections are significant for a simple and proven process flow-sheet design, yielding a highly desirable lithium chemical to support accelerating electrification markets.
• SP Angel scenario modelling targets three viable mine scales, deriving NPVs for 1Mtpa, 1.5Mpta and 2Mtpa processing plants to deliver a 6% Li2O spodumene concentrate only 100km to the Takoradi deep sea port:
Cape Coast Operational Summary
Operating Outcomes 2 Mt Unit
Project NPV8 (post-tax). 298 GBP£m
IRR (post-tax) 54% %
Target Share Price (post-tax). 96 Pence
Growth Factor (post-tax) 5.1 x
Those figures are from the SP Angel report. Since then we’ve had the JORC and we know the resource potential could be x3 or x4.
I’ve looked at $MLL On ASX because they have a PFS already and have a lot factored in but when you compare the logistics and distance to port it gets interesting (1,000km vs 100km). https://malilithium.com/GoulaminaLithiumProject.html (Look at the IRR PFS).
Comparisons can also be drawn with PLL in the US and I’m interested to see their presentation later on today on the Benchmark US Summit.
Ewoyaa is certainly increasing in value as the Lithium disconnect continues. The quality of the spodumene at Ewoyaa will give IRR low impurities. That’s increasingly driving the value imo.
LKE’s announcement last night of 99.97% high purity means per tonne they’re now looking at $15,500 rather than $10-$11,000.
Top purity BQ LCE is expected to go back to 2016/17 prices around $24-$26k. There simply isn’t enough Lithium around in exploration projects let alone in development stage or close to production to meet the increasing demand.
Ewoyaa has unusually dense Spodumene rich pegmatites which will produce low impurities as highlighted by Dr Kathryn Goodenough of BSG on her site visit & geo talk and then backed up by the JORC and metallurgical testing.
Working out a value is difficult but looking at comparative projects helps.
The logistics at Ewoyaa reduce the Capex because so much is in place and Opex must be low because it’s all at surface. Vince and Len have referenced this recently.
The value is determined by what someone is prepared to pay for It and imo also depends where the lithium is processed.
I think the current gold projects aren’t really factored into the current SP. The lithium valued @ £60m would just about cover the current share price.
I’m using crude figures
Directors Dealings
200,000 each for NH (Chairman) & VM (CEO) at 15p
A demonstration of confidence from the BoD.
Looking forward to another beer with you mate at some point. Great timing on your part. I’ve just taken advantage of the drop and try to keep up to date with all that’s happening on the ground, which I have to say is getting rather interesting.
I’m still around on Twitter
Good to see you Roeh9. Nice buy.
Hope all is well.
2015 = 3 Gigafactories
2020 = 171 Gigafactories (October)
2021 = 200+ Gigafactories (February)
Where is all the Lithium coming from?
Q1 for the MRE is probably more realistic but wouldn’t it be good to have it late January 21 and then go into Indaba in Cape Town. An African focused event in which IronRidge has a good presence. Especially after last year & look at the progress since then. (How many open pits did you say? and Bulk lower grade across 47km?).
Farq, I’m still expecting $2,000 by Christmas, given all the turmoil and money being printed as stimulus packages. I picked up on the gold discussion with precious metal analysts at 121 in April (I think).
Since then there are various scenarios where gold will continue to rise in this cycle. Sprott’s analysis is really interesting, to have exposure to gold equities.
Warren Buffett’s move into Barrick is a big signal too especially when you consider Mark Bristow’s involvement with Randgold. (If people don’t know the significance of that, it’s a good place to start).
$3,000 is possible in this cycle and the sector needs a BIG discovery. Africa is the place to be and in the Birimian. People are missing the significance of bulk gold at lower grade over the 47km SL of Zaranou, imo.
It’s still under the radar because it’s not as straightforward as some others imo and the scale is unbelievable. I agree with Mike, that the drill numbers incoming will help shift the SP. (Rerate)
It’s not even factored in to the SP yet as the Lithium covers that. Go figure. Ewoyaa is going to be in demand. Vince holds a strong hand. The lithium disconnect continues and prices are rising. Listen to Joe Lowry podcast E81 to understand the value of Ewoyaa. Look at Piedmont recently, valued at $700 m/cap Aussie dollar.
Remember Vince said the lithium could quadruple leaving it about 50Mt @ 1.31% Li2O Vs PLL 56Mt @ 1.11% Li2O
Enjoy the weekend all.
“There were be enough shares for people to get in” or they’ll just have to pay more.
A small freefloat with how many of those tightly held too?
One the news starts I think it will be quite busy between now and end of December. Enjoy the ride.
Our small freefloat of 30% is going to cause some serious damage. All about the scale. That bulk across the strike length gets me going with the lower grade cut off. Add in in the hot spots and depth to 180-200m and then run the numbers.
It’s a effingggggggggggg monster.
The Lithium is increasing in value imo with spodumene prices rising.
We’re waiting on the last few holes from phase 2
that are pending. I looked back at the RNS from 5th August (I think). I’ve high hopes for these results because they were the ones with the visible gold in the first drill. (9,13,15 & 19 are of particular interest from memory but I need to check).
3rd drill about to turn now as well. Earthing, I think you’re about to enjoy the ride.
Earthling,
I didn’t take part in the placing but bought in chunks from 7.22p up to 8.5p at the time to average down.
Vince made reference to being cashed up and not needing the warrants in one of his recent interviews. I remember thinking at the time I’ve never heard that before on AIM.
We’re about to hit a very busy period of RNS announcements as the three drills are now turning. We still have results pending from 2nd phase but the 3rd phase drilling is particularly exciting in understanding the size of the Zaranou project. I think the geology indicates that the gold is at surface but has the potential to be discovered deep too. Zaranou already looks like it has potential for a few open pits with very low Capex & Opex so AISC should be very competitive. Zaranou will turn out to be significant imo, how significant is the question? I have my own ideas on that but will keep them to myself.
The Lithium is certainly commercially viable and given the Tesla deal this week for 30% of PLL’s spodumene lithium production, I’d say IronRidge’s Ewoyaa project has just increased in value.
West African lithium has been so far off the radar that even many of the lithium analysts don’t mention it or even know about it. (Not the sort of research and analysis I’d have expected by known people in the sector).
Hydroxide and Carbonate prices are rising for battery quality lithium. The refining picture is changing. Could we see lithium refining in Africa? The West African hub in Ghana is perfectly positioned.
If not then there’s a market & auto OEM’ will be watching because right now they’re really scratching their heads on how to secure a supply chain.
I’m focused elsewhere at the moment because I’m very confident about what’s coming. If we get to March and there’s been little progress and the SP has t moved I’ll review things then.
The bb is very quiet but it doesn’t necessarily mean things aren’t developing in the right direction.
Cashed up, drills turning with gold and Lithium at unbelievable scale and grade.
Bring it home Vince.
Earthling, think about it differently. It’s not all about the headline grabbing hot spot grades (although IRR have plenty of those) but also about the bulk we have over the strike length down to 100m. They’ve only drilled and covered target areas covering 12km of the 47km strike length but have already identified 3 potential open pits, possibly 4 imo. The gold is at surface along the strike length and at bulk of lower grade with multiple hot spots too.
They’ve said today “Our early ounces strategy is to target weathered oxide mineralisation, with initial observations suggesting it continues to average depths of 50m and up to 90m, suggesting simple mining and processing at low operational and capital costs.
“Our longer-term strategy is to extend a resource at depth within fresh material where initial RC results have intersected high-grade mineralisation.
“The third phase 50,000m combined AC and RC programme is now well underway with two drill rigs active on site and a third rig planned to arrive shortly.”
They intersected high grade mineralisation at depth.
How deep? Is the question in my head.
It’s open at depth along 47km too. It’s going to come over the hill as the song says.
That would be a mig mistake imo Farq. Someone will get badly burned taking a short at this stage.
Today’s RNS lays out what’s coming and in quick succession if I’ve read it correctly. Although it’s been quiet while the teams had a break it was outlined in the previous RNS that relief teams were preparing the drill pads. There’s been no slow down in reality. Yes we’re waiting for the last results from 2nd phase drilling but we’re now pressing on with 3rd phase (50,000m combined AC & RC) across the strike length.
How many pits is a great question. A ‘Super Pit’ mentioned for the first time too. One centralised plant imo but if the historical data is verified on this drilling phase then that means the two ends of the SL and the centre will be commercially viable imo.
Where do you place plants then for operational synergy.
I’m just talking about the Zaranou project but add in the other licences and 3,584km² in the gold portfolio.
The Entire Country underlain by prolific Underexplored prospective Greenstone Belts. Major gold bearing regional structures with operating mines of Barrick, Newmont, Centamin & Resolute.
Shorting this is extremely high risk imo. The lithium alone justifies the share price.
It’s going to be a GOLD, GOLD Christmas. Bring it on.
50,000m of combined AC & RC drilling along the Zaranou strike length.
Is that 3 or 4 with a SP? It’s going to be big.
Posted by Joe Lowry today 31/08/20
July carbonate imports to Korea & Japan still > $10,000/MT. Japan BQ hydroxide imports ave >12,000 (from US $13,600). Korea was > $11,500/MT
BQ price is rising.
Look at the prices for Hydroxide and Carbonate.
I think the price for LCE of battery quality is about $11,500 but there’s a sliding scale.
The shortage is going to be in the BQ.
Listen to Joe Lowry discuss pricing with Roger Atkins at about an hour in. They’re discussing where prices of BQ could get to.
There’s also a really interesting piece in there about Elon Musk at 90 minutes
Warren Buffet & Berkshire Hathaway taking a 5% holding in Sumitomo (that could grow to 9%) is going to shake things up a little.
An indirect investment in IronRidge Resources. Sumitomo hold 7.8% of IRR as of September 2020.
A direct double play for the gold and Lithium.
Buffet also bought into Barrick Gold recently who are now looking for a Tier 1 gold asset to acquire.
Remind me again who was CEO of Randgold and knows the Birimian potential.
Oh yes, Berkshire Hathaway hold 25% of BYD so might just be securing supply chains before the scramble starts and a major OEM misses out on supply.