Pure Energy Minerals - PEA Mr. Robinson steps down as COO but apparently still connected to company as a Director.
CEO Mr. Highsmith is energetic and determined and am doing a clean up, moving towards honoring deadlines and building a successful business.
As first step he takes in Vice President of Projects and Permitting, with project management experience. Sounds like the right move to me.
Now some thoughts from me, which may or may not be correct interpreted: and disclaimer I own stock in Pure Energy MInerals.
I rather believe Mr. Mntak, former Chairman of the Board and founder, had a pump strategy and hoped to be bought up before entering into the development and mining business, hence nothing really happened the last year and a half, because the skillset was not there. The Chairman and COO steps down and managment is gearing up for development under the management of CEO Mr. Highsmith. It is clear he wish to bring it to the next level and that creates a disruption, however no pain no gain.
He is determined, located great, former success of similar development (Lithium One), Tesla open ended supply agreement of 20% of production, pioneer in technology with Tenova Bateman collaboration, located in Nevada, and macroeconomics working in favour with upcoming deregulation and tax reduction under the new administration. And even though they lost a year of fiddinling around under the old management, they are still 2 years ahead of any other junior miner in USA. Final point, the extraction technology (Mini pilot plant tested successfully makes it possible to produce LCE within weeks continuously, where current technology takes 12-18 months in evaporation ponds. Hence additional 2 years advantage - hence 4 years head start to a majority of other junior brine explorations world wide, to provide continuous Lithium t the marked.
Now more seriously, we have been waiting for a PEA (Preliminary Economic Assessment) for a long time now. in 2015 they issued a document concluding that they have and inferred resource equivalent to 816.000 metric ton of LCE. with good grades of lithium the northern part and low grade lithium in the southern part.
I read on SEDAR the updated report released in february, where they keep that number, claiming the inferred resource might be 10% higher in the northern part of their claim and say they expect the same as previously in the southern part, based on their non updated findings.
However their drilling CV 4, 5 and 6, did not go very well in terms of locating Lithium located in the southern parts, however they claim it is within the tolerances what they predicted, which lead to the keep the 816.000 MT LCE.. The Last drilling CV 7, a 8 are located close to the northern part and close to the silver peak mines drilling. they are very deep upto 800 meters as i recall and the deepest drilling in the entire area. Successful pumping of material however lithium content not known to the public yet.
I am far from an expert and not entirely sure how you calculate an Inferred Resource, my guess is: based on some drilling samples you determine how much lithium there is in various depths and then extrapolated that out to the entire claim.
The Negative:
Pure Energy MInerals has a very large claim and the far majority is in the southern part with indicate low grade lithium, however large area with low lithium gives a high number of MT of LCE, however is it economic viable to extract that, this is a question mark for me.
The maybe Positive:
The northern part looks in line with their claimed inferred MT LCE, and I am pretty sure this economic viable to extract. Drill point CV 7 and 8 Lithium points are not yet know, located in the northern part of the southern claim, close to the silver peak mine drilling, however much deeper.
(side story, once i had an internship in Hempel Kuwait, and some locals the office told me Iraq was angry at kuwait, because they were drilling oil from the same formation underground, but Kuwait drilling point was much deeper, hence they tapped into iraq oil resources .Dont know is that is correct) However this could work in favour for Pure Energy Minerals if that is the case on CV 8 drilling point.
They also have a claim with Cypress Development bordering the norther claim where tttt have an option to 70% of that claim,I have not taken that into consideration, but good formation of high content lithium has been found in clastone.
PEA:
I believe the informed inferred resource of 816.000 MT LCE will be reduced in the PEA, there is lithium in small grade on the southern claim however might not be economic viable to extract.. Could be positive surprised with CV 7 and 8, especially if it related to my little Kuwait story
My non professionel guess as example could be there might be 412.000 MT of LCE that is economic viable to extract. That does not sound like much, however what is that in numbers.
412.000 MT LCE
Extremely conservative price 3000 USD per ton LCE
Equals = 1,26 billion USD worth of sale
The Capex for Tenova Bateman plant is around 250 million USD Turnkey.
I hope my guesses and interpretations are correct and am looking forward to follow Pure Energy MInerals in the future.