The ADV thread remains one of the worst of the all the lithium...

The ADV thread remains one of the worst of the all the lithium forums I read on HC. To a large extend this is due to @You3OAte who for whatever reason hates this company and/or its managers. So whenever there is a message from the company you can be sure that he will post something negative about it. However, and to give him credit, he does seem to read the announcements better then the majority of the "positive" posters. So it is certainly not right to just dismiss his posts but they have become a bit of a nuisance over the last two years since they are extremely negative.

The main problem for ADV is that North Aubry has shown to have some very high grade lithium but unfortunately not too much of it. Second problem of ADV is that the progress has been very slow. So after a long time of drilling, but actually with not all that much drilling, they came out with a JORC for North Aubry of 1.23MT with 1.43%Li2O. The 1.43% is a very good result. The 1.23MT is a very poor result. For a viable business case as a rule of thumb one can say that about 10MT is needed, ADV was trying to make a case that 5MT might be enough given the high quality and high purity of the North Aubry lithium. But it means ADV still needs to 5x to 10x the amount of lithium they have found so far. Note that the JORC was based on the red area in figure 1 of the news release above.

 

Unfortunately central and south Aubry had very little to show for it so they are now expanding the search in North Aubry. Based on figure 1 it looks like the area has been increased in size by a factor of 2 to 3. But remember that they have to find at least 5x more lithium compared to the red area. And the results reported today are really not good, You3OAte is right in that. E.g. ASD019: 5.02m @ 0.67% Li2O. The 5m strike is the typical problem of ADV of the last years, a thin slab of lithium. But usually it would return with like 2% to 4% of Li2O. This one returned only 0.67% of Li2O which is marginally above their own JORC cut-off grade which was at 0.4%. So ASD019 is basically a non results just like the not reported ASD 014 015 016 and 018. ASD012: 17.91m @ 0.85% Li2O from 126.95m is also a pretty marginal result. ASD013 and 017 are OK.

So despite the fact that You3OAte is typically overly negative on ADV this time I have to fully agree with him. These results are not good! Norht Aubry has a nice slab of high grade and pretty pure lithium but there does not seem to be enough of it there to make it economical to mine it. And this extension of the JORC area seems to have less and lower grade lithium. So it is not really delivering the much needed increase of the resource.

And in the JORC report from October 4, 2017 they wrote as conclusion:

"Ardiden now looks to rapidly expand and advance the North Aubry deposit in order to commence lithium production as soon as practicable".

And now ask yourself the question "is that really what they did in the last 12 months?

They still have enough areas to search for lithium. But the speed they are moving at is so slow. And this couple with their pretty bad luck in trying to find lithium is not making a nice picture. So they have to come up with a new plan on how to move forward and rejuvenate the interest in the company. With the current pace and direction ADV is moving quietly into the night.