Sharetrader, ASN lithium concentration is too low. If lithium price drops it will not be economical to mine.
I thought a good brine project suppose to have high concentration of lithium, potassium as by product credits and low concentration of magnesium.
BMG Chilean brine project which they are about to drill, we might get around 1500 mg per litre lithium and high grade potassium as by product. In Salar De Atacama, the average grade is over 1800 mg per litre of lithium, 22,000 mg per litre of potassium and lithium to magnesium ratio is about 4 to 6 (the lower the ratio is better). GLN has really low ratio.
Given BMG market cap is only $3.5m, even if they only get 500 to 1000 mg per litre of lithium (ie extremely low concentration for Salar de Atacama standard), IMHO BMG can easily get to $12m market cap (about 3c per share from 0.7c).
IMHO I wouldn't surprise to see BMG gets 1500 mg per litre lithium and 10,000 mg per litre potassium. IMHO this will send BMG share price rocket several folds, possibly to 6c.
They estimated BMG Salar South has brine volume about 700 million cubic metres. They are doing geophysics of their new area (see presentation), which may increase the size to 1.4 billion cubic metres. If they get 1000 mg per litre of lithium and specific gravity about 1.2, 1.4 billion cubic metres of volume, we are looking at 2 million tonnes of lithium.
if you do a detail research on their other sites (Natalie and Salar de Paganole, I can't spell), you will find they are pretty good too.
Wealth Minerals listed in TSX valued at about $60 million. They paid US$15 million in cash and about $10 million in scripts for only Salar de Atacama for 40,000 hectares). BMG deal very little is paid to vendor, most of that goes to exploration cost.
Chile is a mining country (copper, gold and lithium). I read a report saying in Argentina they cannot find qualified engineer to work on lithium brine and very few engineers are willing to go there without paying massive salaries.
BHP, RIO, SQM etc have been in Chile for very long time.
I don't know much about ASN. IMHO I will stay away from US brine in Neveda.
