Piedmont Lithium increases its mineral resource estimate by 21%

Published on 24-04-2019 00:00:00

Piedmont Lithium has increased its JORC 2012 compliant mineral resource estimate by 21% at its 100%-owned Piedmont Spodumene Project, located in North Carolina, USA. The resource estimate now stands at 19mt at a grade of 1.15% Li2O containing 0.219mt of Li2O (Exhibit 1), compared to the previous estimate of 16.2mt at a grade of 1.12% Li2O containing 0.181mt Li2O.

Piedmont Lithium has increased its JORC 2012 compliant mineral resource estimate by 21% at its 100%-owned Piedmont Spodumene Project, located in North Carolina, USA. The resource estimate now stands at 19mt at a grade of 1.15% Li2O containing 0.219mt of Li2O (Exhibit 1), compared to the previous estimate of 16.2mt at a grade of 1.12% Li2O containing 0.181mt Li2O.

Exhibit 1: A chart of the grade and tonnage of the Piedmont Project compared to its hard rock lithium peer group.

Source: Edison Group. Note size of data point is proportional to contained Li2O

While the project remains at the smaller end of its peer group in terms of its contained lithium oxide content (Li2O) (Exhibit 1- data point size), the Project sits at the upper end of the mid-grade range (Exhibit 2). Importantly, we would expect to see the contained lithium oxide content continue to grow, with the additional drilling underway at the project.

Exhibit 2: A chart of the grade distribution curve of hard rock lithium projects

 

Source: Edison Group. Note size of data point is proportional to contained Li2O

An additional 70 drill holes are currently being drilled at the Core Property testing potential extensions (Exhibit 3). These are expected to be included in a further resource estimate update, due for completion in June 2019. To give some context, the 21% increase to mineral resource estimate comes from 18 diamond drill holes completed on the Central Property (which previously contained no resource estimate), so the potential increase from the current drill programme is significant.

Exhibit 3: Map showing the location of mineral resource estimate for the Piedmont Project and potential extensions

Source: Piedmont Lithium

Further milestones expected from the Company this year include an updated Scoping Study due in July. This will be based on the anticipated June mineral resource estimate upgrade likely resulting in a larger project with a longer mine life. A Definitive Feasibility Study is also due to be completed by the end of the year, this will represent a substantial de-risking event for the company. We could also see further increases to the companies ground holding, which the Company recently increased by 15% to 2,105 acres.

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