RE:It was at 44 today...buy it hereObviously that was good news this morning, but it wasn’t spectacular. It confirmed that the historical data on the Wisa lake property is probably in the ball park, not much more.
The 6.3% grab sample was the best of 50 odd samples, which ranged as low as .015% LiO2, but of course, the cheerleaders focus on the highest sample. A little geology: 1) Grab samples are selected by a geologist or prospector from an outcrop, 2) Pegmatites have very large mineral crystals in them (sometimes several feel long), 3) Spodmuene (the lithium bearing mineral in this pegmatite) is 8% LiO2, and 4) any geologist or prospector would be able to identify spodmuene (if it is present) and select that sample. Those are all facts that anyone can verify. Put them together and a 6.3% grab sample from a pegmatite means that there is lithium there, but really tells us nothing about the grade or quantity.
The channel sample means a lot more. It is also selected in that they pick the cross section of the pegmatite that they sample and will choose the best looking location. But at least it represents the entire width of the pegmatite at that point. It was better than the historical estimate, which is good, but it wasn’t spectacularly better, given that it too was selected.
Together they start down the road of verifying the historical estimate. Should the stock take off on news like that? I certainly don’t know. It probably shouldn’t drop on news like that (unless it was overpriced in the first place), but then again, I never claimed I understood short term share price movements.