In a busy Q3, Lepidico Ltd (AX:LPD) has announced two sets of drilling results from Alvarrões in Portugal, one set from Lemare in Quebec and the conclusion of a farm-in deal in Western Australia. Edison estimates that the Alvarrões drilling results are indicative of a resource in the order of 0.7-2.3Mt of mineralised material at a grade of 1.10-1.13% Li2O, with an in-situ value (upon achieving JORC-compliance) of US$0.5-1.6m. Note that formal mineral resource estimates are expected from both Alvarrões and Separation Rapids in September or October 2017.
Resources likely to support Phase 1 development
Upstream lithium mica feed to Lepidico’s planned Phase 1 L-Max® plant is to be provided from as many as three lepidolite deposits, namely, Separation Rapids (via a concentrate offtake arrangement with Avalon Advanced Materials), the Alvarrões lepidolite mine (via an ore offtake arrangement with Grupo Mota) and/or the PEG009 deposit at Pioneer Dome (subject to 75% farm-in by Lepidico). Of at least as much significance as the direct value of the in-situ resources being drilled therefore is the fact that it is highly likely that the mineral resource updates in September/October will confirm that Lepidico has the 1Mt required to supply a Phase 1 L-Max plant development for in excess of 10 years.
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