RE:RE:Neo Lithium Discovers High Grade Lithium at Greater Depthsupersceptic,
Couldn't finish before, so here's the remainder:
Quote: "At the same time, I find it upsetting that management seems to underappreciate drillings and deposit expansion ..."
Note: I don't think they do. They have reported problems with drilling at depth in the high grade zone before. Picture yourself digging a hole near the waterline at the beach. You know what happens.
They've done extensive hydrology and maybe they want to be careful not to lower the hydraulic pressure at larger depth, or even create cavities, in order to not destabilize the structures above. Some form of collapse may be acceptable at a later stage, but it would be poor news before we're financed.
The kids in clay claim to have different (cheap) extraction methods. Maybe (just guessing) there's something in the pipeline for brines as well. Technology is progressing at great speed.
They do have a plan to go for brine production the conventional way, but maybe they're keeping options open for different methods.
I've started to think this way as there's such little progress on the financing side, which I find strange as, as you've stated in other words, we're sitting on a gem. We'll make money even at $5K per ton, which will leave all rock producers in receivership and that can't happen as demand is increasing on a daily basis (trade wars not withstanding).
Management is restricted in what they can publish. Sure, flowrates and quality of single and even multiple wells may be reported on, but that is different from "reserve" reporting. They know much better what we have than we do. The single well reporting of today was a bit colored too: "In a previous report, we said there's 10m of brine and now, oh surprise ......, we have to report that it's 265m (open at depth) and high grade as well".
From the seismic they knew very well how deep they can drill at that location and there was no reason to believe the deposits would be very much different from the rest of the high grade area.
As a ballpark figure, I count on 10 million tonnes LiCO3 for the project. Have done so for some time now.
Just waiting for 60 cents to get some more, even though I'm already 30% over my planned allotment.
have fun.