Resource upgrade surpasses expectations whilst investment in lithium sector picks up
Perth, July 13, 2017 AEST (ABN Newswire) - Lithium Power International (
ASX:LPI) has announced a resource upgrade at their Maricunga lithium brine project in Chile.
Highlights of the announcement include:
- 270% increase to the JORC resource - 2.1Mt Lithium Carbonate Equivalent (LCE) and 5.6Mt of Potassium Chloride (KCl);
- Grade - 1,163 mg/l lithium - remains one of the highest grade brine projects globally;
- Exploration target - 1Mt to 2.5 Mt LCE & 3Mt to 6.6 Mt KCl;
- Pre-Feasibility Study - 4Q17.
Analyst Comment: The Maricunga project in our opinion is fast becoming the standout development lithium brine project globally. This resource upgrade (2.1 Mt LCE) was an excellent achievement and surpassed our previous expectations (1.5Mt LCE - TSI estimate).
Importantly the increase in resource size was not at the expense of the projects exceptional grade (1,163 current vs. 1,250 previous), as Maricunga remains one of the highest grade lithium brine projects globally.
We believe this resource is more than sufficient to support a long life operation (TSI estimate - 26 years), and will underpin the Pre-Feasibility study which will be released towards the end of the next quarter (4Q17). Full details of our analysis as well as an update on the lithium market can be accessed by clicking on the button below.
The information in this email should not be the only trigger for your investment decision. We strongly recommend you seek professional financial advice whenever making financial investment decisions.
Valuation: We increased our valuation from $1.10/share to $1.24 / share (SP $0.33 / share). This increase was due to an expansion in our mine life assumption.
The information is general information only. Any advice is general advice only. Neither your personal objectives, financial situation or needs have not been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice. Adam Kiley (AR No. 458224) is an authorised representative of Intelligent Financial Markets Pty Ltd (AFSL No. 426359).
TSI Capital Pty Ltd (TSI Capital) will only initiate coverage of a company that passes our internal investment checklist. Once a company has passed this checklist will we initiation coverage of the company as well as follow up with ongoing updates and commentary on that company's activities.
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To view the video, please visit:
http://www.abnnewswire.net/press/en/89111/lpi
About Lithium Power International Ltd
Lithium Power International Limited (ASX:LPI) is a pure play lithium company with three distinct project regions to provide diversification. One is located in South America's brine region and three are in Australia's spodumene hard rock areas of Western Australia.
The primary focus is to develop of Chile's next high-grade lithium mine on the Maricunga Salar in an area known as the Lithium Triangle. The Company has also expanded its tenement holdings of lithium exploration prospects in Western Australia.
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