focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
The lithium in soil assays revealed in the 30th May and 22nd June RNSs were, IMO, truly spectacular.
Australian lithium companies would be wetting themselves with excitement over these lithium in soil readings. One Australian miner recently stated: āA +60ppm lithium anomaly in shallow soil samples is highly significant. Several exploration companies have adopted this mark as a significant soil anomaly threshold based on Kidman Resources Ltdās large and high-grade Earl Grey lithium deposit that was defined by a discrete +60ppm lithium soil anomaly.ā
To put Fireringās lithium in soil assays into some sort of context, they havenāt even bothered to report any readings that low; a reading had to exceed 85 just to be registered at the lowest end of the scale on their heat-map (Figure 1 in the 22nd June RNS).
Here are a few fairly typical results extracts quoted by other miners reporting lithium exploration results: āNimy Resources: High-grade lithium anomalies: high of 108ppm mean of 72ppm, accompanying rubidium [a pathfinder element] high of 112ppm mean of 75ppmā, āEnterprise Metals: High-grade lithium soils: Multiple major elevated Lithium soil anomalies, +60ppm Li. Lithium anomalies cover significant scale, with 0.5-1km elevated Li at most anomalies. Peak assay of 117ppm Li with multiple samples exceeding 100ppm Liā, āBalkan Mining: The results have defined two northwest-southwest striking trends coincident with high-grade outcropping spodumene-bearing pegmatites. Soil sampling assay results including up to 110.5 ppm Liā.
By comparison, Firering reported lithium soil anomalies of up to 4,499ppm and rubidium up to 2,700ppm, indicating the presence of high-quality, highly-fractionated pegmatites.
The other impressive thing is the sheer scale of the apparent mineralisation. To my mind the lithium heat-map in the 30th May RNS appears to show a pretty continuously mineralised strike from north-north-east to south-south-west of about 12km, and which is typically kilometres wide ā and thatās just the area thatās been mapped; does it continue even further at either end, who knows?
IMO, Atex is looking every bit a world-class lithium and coltan resource, as hinted-at by previous drill results - and then thereās the larger, as yet unexplored, Alliance prospect to the south.
The last two RNSs were very positive imo, but passed by with little or no comment.
I'll perhaps give my thoughts on what I think the significance of them is when I get some time.
Today's RNS highlighted the discovery of a number of additional pegmatite zones resulting from the Phase II soil sampling analysis across the Atex licence, with more results still to come.
The lithography mapping contained within the RNS report seems to indicate additional pegmatite mineralisation in various zones/directions around the previously known ones, especially interesting are the results in the direction of the boundary with the adjoining Alliance area, which looks like it continues SSW into that area.
This is interesting because Firering have the option to increase their interest in the Alliance licence to 80%, in additional to their current Atex licence area, extending the project's licence area to some 500km2.
What with the existing excellent drill results around Spodumene Hill previously reported plus further drill targets it's looking like they're sitting on a whole lot of lithium, not to mention the coltan (tantalum and niobium), relative to their lowly Ā£6m market cap.
The investment opportunity afforded by Firering's current valuation and market cap remind me of when I bought ASOS shares for just 8p, at a time when it was clear (to me, anyway) that they had reached critical mass and profitability, because some fund manager (Schroders I think) was selling down millions of shares at that level. Shortly afterwards they set off on their stratospheric journey to Ā£40+!
I believe a similar massive rerating could occur here with Firering's shares, based on reading between the lines of what the company has already announced, and what they've said (and how they've said it) in presentations, videos, etc.
They recently announced that they had increased their stake in the Atex project/licence to 90%, stating that the decision was 'an easy one'. They also currently hold a 51% controlling stake in the adjacent Alliance licence area, with the option to increase their stake in that licence to 80%. They already know, due to their 'due diligence', that the Atex project's lithium resource extends SSW-ward into the Alliance licence area. (The combined Atex/Alliance licence area extends to some 500km2, which is 'highly prospective' for both lithium and tantalum/coltan.)
What's not to like!?
Not many people have even noticed or heard of Firering yet, but I believe that will change in the not too distant future. When that happens you won't be able to buy the shares at today's prices. All IMO, of course.
Another interesting aspect of the Ricca investment in Firering is that they have agreed to invest an additional $2m, taking the total to $20.6m, if Atex's lithium resource ends up exceeding 20Mt; that's the sort of magnitude they're looking for with their investment.
If anything remotely like that turns out to be the case, Firering's shareholders will be massively rewarded from these levels.
Some interesting posts about Firering out there, suggesting the potential value of their assets.
One thing's for sure, IMO, Firering's extremely cheap on any tangible measure I can think of at the moment.
It's all about the market cap here.
Neil Herbert is not only excited about Firering's Lithium but also the very high quality Tantalum which occurs along with the it.
He draws parallels/similarities with the geology of Atlantic Lithium's project in neighbouring Ghana which, although at a slightly later stage, has a market cap about 26 times that of Firering's.
Ricca Resources' recent investment effectively valued Firering's Atex project (a small proportion of Firering's overall concessions in The Ivory Coast), on its own, at Ā£30m or 34p per Firering share - and the project's fully funded to DFS by Ricca.
Also, Firering have favourable banking facilities already in place for low-cost initial production of high-grade Coltan (at about $150,000 per tonne, according to the company), which in turn will self-fund ongoing value generation. Most importantly, IMO, the company have said that they see little or no need for additional fund-raising/dilution in the near future - by which time the share price should be considerably higher than it is today.