Plateau Energy Metals Inc. PLUUF

Maiden NI43-101 resource calculation

[ATLEVAN]

Anyone want to take a crack on the size  NI43-101 that will be released considering the deposit found so far:

1.7Km in lenght, 1.2Km in width and over 150m in thickness.

[Austrian007]

I am totally totally new to this type of calc... but lets see. The volume is 1700 * 1200 *150 cu metre. density - lets assume 2 t/cu metre So raw material in Mt is - 600 Mt. If 3000 ppm - then Lithium available would be about 2Mt.  

[Austrian007]

Not sure if ppm refers to volume... possibly yes... In which case it would be  1700 * 1200 * 150 m3 - 300 M cu m 3000 ppm would mean 1 M cu m of Lithium Lithium is the lightest metal with a density of 0.5 g/cm3.... so the above would be 0.5MT I think the above 0.5Mt rather than 2 MT is more likely to be correct. 

[Wever1974]

  I think it best left to professionals. Thickness varies quite s but  as does high grade.  43101 coming soon enough .In the  meantime just enjoy the ride. Should see $1.50 near term if we  get a break with meaningful volume. . 

[agoober]

I'm sorry but your calcultation are all very, very wrong. you've understated the resources by about 8 million tonnes of lithium. i suggest talking to Ian Stalker before you break out your calculator again. We are looking at a number that is closer to 10 MILLION TONNES OF LITHIUM CARBONATE. 

[Austinvrabel]

HI there, Just curious, how much does this 10 Million tonnes of lithium compare to other small cap companies inventory? What would those companies market cap be?

[Y93H1979]

It varies quite a bit. Bacanora has a large clay based resource and a 190M market cap. Global geoscience has a market camp of over 600M AUD MC (for the life of me I can't figure out why), even though BCN's project is more advanced. It must be that the chairman of GSC was from Orocobre. IMO I believe the process flowsheet for LiCO3 production will be the more important announcement rather

[Austrian007]

If this is anywhere close to reality, we should be looking at a M.Cap of PLU close to $100B range.. A 1Mtpa production and a net margin of $5000/t would put the profits at $5B... So we have wait with fingers crossed on the resource numbers and metallurgy / flow sheets to be finalized.  Cheers,

[Y93H1979]

Oh Sorry, when I said 11mtpa I meant that was the rate at which the ore can be mined, not final saleable product. 11 mtpa mined ore, with a Li2O grade of 0.7% gives you 77,000 tones LiO2, x 2.4 gives you 184,800 tonnes LiCO3. That's IF the processing is capable of keeping up with 11 mtpa ore

[BigBull94]

So what you're saying is PLU is still EXTREMELY undervalued?

[Austrian007]

oh... so 0.2 Mt of LiCO3 at 5000 margins... so 1B net... which is still very undervalued. Whats the output for some of the large lithium plays these days?  Cheers,

[agoober]

Lithium X was bought out for roughly $300 mil and they had a resource size of about 2.2 million tonnes of lithium carbonate hosted in brine so it needs to be evaporated which takes about 18 months.  PLU has about 5X that amount and their product is hosted in sedimentary rock so (if it is extractable) there is no evaporation delay. If you use that 5X multiple and dont discount the project we

[Wever1974]

  Your NPV is actually on the low end in a big way .  The known resource of U308 in a normal market   will fetch this numbers . They have barely begun   , the drill are going to be turning for quite some time .  As per Ted’s last presentation it’s looking to be the worlds  largest Li play or at worst in top 3 . Story plays out and it is a 3-5 Billion NPV .  The U

[Austrian007]

That was not NPV... just cash flows/year assuming production of 1Mt of Li ore (200,000 t of LiCo3) at margins of 5000/t. I presume M.Cap would be between 10-20 B depending on the mood of the market.  Uranium may not be as big a story... at best 5MOz/a at a margin of $20 perhaps at that time... so almost a rounding of error in some sense. Cheers,

[Austinvrabel]

If we take a conservative approach with these estimates, we are looking at ~$1B market cap. With 69.5M Shares outstanding, this gives us a projected share price of $14.39. Which from our current levels of $1.00/share would be a 1300% return. Not bad to say the least! Could even be higher if we aren't using conservative estimates. 

[Austrian007]

Broke thru 1.00 rather easily on a not so good day for the other stocks. I am now fairly sure that when the NI 43-101 comes out later this month, we should easily see a doubling. & I think we should use 78M shares as all options and warrants would be converted if trends continue...  But Yes, we can expect fantastic returns in the next 2-3 years leading upto production. Cheers,

[Wever1974]

  Sp should see $1.5 prior to release of 43101  minor resistance at $1.25 area abit stiffer at $1.50   a triple from here still has a MC under $200m wayyyy undervalued .