Liquid assets 900k plus 1500k from CXO = 2.4 mill and 40 mill shares in CXO where 1/3 of them come our of escrow every 4 months for the next 12 months so cap raise looks like a small to negligble risk at these levels.
They picked up 100% Buldania Lithium project down the road from Mt Marion (MIN, chinese and NMT JV - NMT sold their remaining 13.8% stake in june for USD 96 mill given look thtough value of project of around 935 mill on a 100% basis. Resource 78MT @ 1.37%LiO2) and the Bald Hill project (TAW has 50% stake ~160 mill - look through project value on 100% basis 320 mill. resource 19MT @ 1.2% Li 150ppm Ta2O5)
Mapped pegmatite swarms over 1600m x 800m area by Anaconda back in the day recent grab samples show peg doesnt appear to be weathered much at surface, alot of grabs came back 2% Li and is spodumene. Individual pegs mapped up.to 500m strike and 150m width, dip unknown at this stage.
Mapped pegs certainly look big enough to punch out a resource in between Bald Hill and Mt Marion.
Price catalysts next 3 months:
Detailed mapping and systematic grab sampling - weeks from now, which should give some indication of possible dips of the pegmatites.
Grant of drill permit
Drilling commenced ann dec/jan
Price targets:
ESR had a project in the same jurisdiction as the above 3 projects it didnt pan out but ran to 50 mill mkt cap prior to drilling results. That was 10 months ago and the lithium mkt is only hotter now so seems a gimme trade/asymmetrical risk, entry at 2.4c and expect ~4c to 5c pre drill results. If the pegs have a true width of 20m to 50m and Li around 1.3% Id expect a share price in the range of 12c to 25c pretty quickly even accounting for a cap raise along the way.
