Highly anomalous lithium results

We were punished savagely in February after the company delivered a double whammy of bad news.

Shares surged to a two year high of 14 cents on high-grade lithium detected in rock chip samples and excitement ahead of a drilling program at its newly acquired Mt Edwards lithium project near Widgiemooltha.

The company’s share price tumbled 50 per cent after the company advised its drilling program had been delayed because of heavy rainfall in the Goldfields recently.

Crews were stood down for a week when it’s expected that the ground conditions will have improved sufficiently for the movement of the heavy drilling fleet and auxiliary vehicles to commence drilling target areas.

Estrella also announced that assay results from two historic drill core samples at the Axis prospect, about 3.4km west of recently discovered lithium mineralisation at the Munda prospect, had returned relatively low levels of lithium. These results demonstrate that Axis is possibly not at the optimal distance from the source to produce economic concentrations of lithium.

The company is now focus on its upcoming drilling programs at Kingmaker, Atomic Three, Inco Boundary and Munda where it has already obtained highly anomalous lithium results from surface rock chip sampling of exposed pegmatites.

Estrella tied up its acquisition of 75 per cent of the lithium rights on 129sqkm of tenements held by Apollo Phoenix Resources on the Widgiemooltha Dome in an all scrip deal.

Chris Reed’s Neometals tipped cash into Estrella at the time while Chris Dawes was appointed chief executive, John Kingswood as a director and Stephen Brockhurst as company secretary.

The Company has $1.48 million in cash and was well positioned to explore its assets.

Estrella also entered partnership with Chinese industrial and resources conglomerate Tianjin Datong Xintian Investment Co Ltd.

Neometals co-owns the Mt Marion lithium mine 40km to the north of Mt Edwards as part of a joint venture with Mineral Resources and Ganfeng.

Neometals expects to make a decision on developing a downstream lithium processing plant in Kalgoorlie-Boulder with MinRes later this year.

The plant would have a nameplate capacity of 20,000-25,000 tonnes a year of lithium carbonate.

With a proven resource I suspect a significant re-rating in share price .

Dislike - the company has not updated its website .

Anything can happen . I'm holding . It is a very good punt for anyone buying in at these stock price levels .

Good luck to all holders .