RE: Rough estimate19 Mar 2018 10:28
Lithium work on 1% as a basic average.
I would even say go to 0.75 if you wanted to be ultra conservative.
Question then is how many tons do KZG have ?
I had a stab at it based on the bible, so only Homestead really, then doubled that for the Lepidolite seam.
There are several other outcropping seams running 200-500m to surface/1m , using the basis that it is not purely found 1cm thick on the surface and has a basic depth of 1m.
My target price based on lithium of $5,000 profit per ton was a conservative 29.3p so say basic 30p, that is WITHOUT Tantalum, Niobium or anyother by-product sales.
I also used 500m shares in issue to cover raiding for 3 x Lithium JORC drilling campaigns , say $7m, plus anything unforseen.
I have also used 750m shares in issue too, just incase but I conside that to be the max required for large scale open pit/ open seams depending on if its a virtical seam or near surface 200-500m seam which could be opened right up easily.
As it is hard rock , with grab samples of Lithium on surface >1.6% and up to 3% recorded in historic data cores , then 0.75% as an average would be pretty cautious. Still near double cinovec and hard rock spodumene rather than the mica based found at cinovec.
The Chinese WILL drive total demand !!!