Critical Elements Lithium Corp V.CRE

How deep was your due diligence M.Fitzgibbon

[tinker901]

Nemaska was using the flotation method (a bit like CRE is proposing) to remove unwanted material from their feedstock on the way to lithium concentrate.
So nothing new there for most of us.

However, how many people know that they encountered difficulties removing a intrusive igneous rock called “gabbro” since it had just about the same density as lithium ?

They were actually cherry picking large chunks of rock that contained excessive amounts of gabbro (black color) in order to keep below 5 % those impurities. But even then, by concentrating by flotation, and since the unwanted gabbro had the same density they ended up with many batches that had anywhere from 6 to 25% impurities and had to be discarded.

This was a big problem and increased their refining costs a lot. They had new engineers come in from Europe I believe and I am not sure if this was resolved or not before their shutdown. So when we were all asking ourselves why out of the blue NMX was asking for an extra 400 million to complete the mine, this did not come with explanations and many assumed it was just bad planning.

Some more savvy investors might be thinking that Canadians do not have the brains to extract concentrate economically. Remember Canada lithium that suffered the same fate as Nemaska. technical problems that created unforeseen extra costs.

Yes Nemaska is showing a large reserve with a high lithium content. But that is not the whole story.

Knowledge and expertise rank # 1 to successfully produce lithium.
And this why hiring Primero to build our mine was the key to success. This and having a president (Doctor Haber) actually know what he is talking about.

Going with Primero to build our mine was a smart move for sure.
 
“Primero is proud to be part of the team awarded the Pilbara Minerals Pilgangoora Lithium-Tantalum Project. With Primero’s lithium expertise and relationships with RCR and Minnovo, the $138mil EPC Contract was secured.”

“Primero Americas was engaged by Sigma Lithium (Sigma) to complete a DFS for the Xuxa Lithium Project located in Brazil.”

“Primero Canada has been engaged to complete a scoping study evaluating viable options for the development of the Piedmont Lithium Project.”

Critical Elements and Primero Announce a Guaranteed Maximum Price for Engineering, Procurement and Construction of the Rose Phase I Spodumene Project

[BluePill]

Thanks. That was great info. So how do we know we don't have the same problem with that gabbro other than words of high purity?

[Wheeler]

Very interesting indeed, perhaps this is whyJSL, Haber and Eric continuously stress the purity of our ore. Purity rules in the Li business.

[tinker901]

Well, first of all Nemaska may have already found a solution. My information is a bit dated. One thing for sure is that if I know about it, for sure JSL is well aware. He can tell us if our reserve has the same type of of rock intrusions, and if yes, how is it accounted for in order to keep our extraction costs at a reasonable level. We already know that we have very low iron content and this

[CIC4ever]

Nemaska's problem was their new process to make Lithium Hyrdoxide.  At the beginning they estimated that they would need 500 M $ for mine and new process, then it went up around 700-800 M $, They raised 1.100 M $ and in the end it would cost 1.500 (at least they were looking to refinance and that led to bankcruptcy.  If companies areinvesting in Nemaska now it is because they made

[tinker901]

If you go back to their NR's you will see that the first 400 million extra came with an explanation related to the mine operations and not the Shawinigan smelter. They were operating the mine at the time. As for assuming that the people that have the power to take decisions to invest are always in the know........well I think I do not have to answer that one. 

[CIC4ever]

I am not able to retrieve any press releases from NMX.  Could you please post it here. Thank you

[tinker901]

In the news, at that time the "official story" was higher steel prices and unforeseen labor costs.    https://resourceworld.com/nemaska-adds-last-400-million-piece-to-lithium-financing-jigsaw/ My information (from an ex worker) may not explain all of those costs, but they are certainly part of it. I even remember looking at their FS before they started the mine and was

[dalesio_98]

-- Posting from my smart phone the content shows up as 1 paragraph so I add the 2 dashes. -- -- FYI, I hold a few CRE shares. -- -- I head the Nemaska Shareholder Group and am pursuing a potential class action lawsuit against the Quebec Government. -- -- Lorenzo D'Alesio -- President and Chairman of the Regroupement des Actionnaires NMX Lithium (RAN) (NPO - OSBL)

[dalesio_98]

-- Any Nemaska shareholders in the group? -- FYI. -- Class action fund goal attained -- Note to Nemaska 25,000 shareholders: -- RAN and NPO/OSBL has attained the $40,000 class action fund goal. -- "Merci a tous les actionnaires pour leur soutien et leurs contributions qui nous ont permis d'atteindre l'objectif de 40 000 dollars pour le fonds de recours collectif. -- Thank you for all

[kakoo88]

I used to be a shareholder, in fact Nemaska was the first Li stock I ever bought. Thanks to some luck, extra DD, a comparison with CRE management and this bullboard I liquidated my position quite early and moved it to CRE without never looking back. I wish you all the best in this journey you are taking, hopefully shareholders will be able to recoup some of their losses. Since you are a

[dalesio_98]

Update on Overall Whabouchi Project -- February 13, 2019 06:00 ET|Source:Nemaska Lithium Inc -- https://www.globenewswire.com/news-release/2019/02/13/1724472/0/en/Update-on-Overall-Whabouchi-Project.html

[dalesio_98]

-- Upon closing the Nemaska deal, the powers to be removed content from the corporate website . I noticed the original URL's do work.

[dalesio_98]

-- Besides searching for content at Nemaska's website, all public information is stored at sedar.com.

[dalesio_98]

-- There was No Nemaska bankruptcy, even the journalists are wrongly referring to bankruptcy!