Lithium Core Results Expanding Clayton Valley Brines, page-12

Yes everything that is being said is correct.

The main determinant in economics here is the balance between targetted dissolved mineral and impurities (good stuff vs bad stuff). One of the major impurities is magnesium and takes up a significant portion of processing costs.

Nevada is known for its low magnesium & impurities content. As @Watchlist said, this has worked well for Silver Peak and has allowed for a multi-decade, low-cost production of carbonate/hydroxide. The only reason the 100ppm of lithium has supported profitability is because of the low magnesium.

I expect our projects will enjoy similarly low magnesium concentrations that will place us with an economic project - as long as we assay 90ppm or more (although given the MT surveys and cross-comparisons with CAD's survey and results, I am expecting >150ppm on average through CM1).

If we get 1:1 lithium to magnesium ratios, it'll be absolutely fantastic.
If we get 1:2 lithium to magnesium ratios, it'll be great < my bet
If we get 1:3 lithium to magnesium ratios, it'll be good
If we get 1:4 lithium to magnesium ratios, it'll be ok
Anything more then it'll be average or worse.

So, it doesn't matter if you have a lofty 1700mg/L Li if your Mg is 43,600mg/L because it simply won't make financial sense to process all that magnesium to reach the lithium. It is all about the ratio - and we are well-exposed to an area with historically low Mg to Li ratios.

As for the share price, it looks like a lot of the resistance at 6c and above has moved down to ~4c and is slowly being digested. All good. We just need to break 4.5-5c for a proper breakout to 6c. After that, it'll be smooth sailing.

Hopefully, we can catch up to the likes of ASN's and its current MC during this financial year.