Grid: Heading towards lithium in Manitoba
Over at motherlodetv.net we have a press release from Grid Metals outlining drill results from its Donner Lake lithium project in Manitoba. I wrote about Grid back in November and I bought a small position.
Today’s press release is very good news. It is not flashy, rather it is consistent. Robin Dunbar, Grid’s CEO does not do flashy. Instead the company drills and lets the results speak for themselves.
“The Main Dyke resource delineation drilling has confirmed a minimum vertical depth of approximately 350m over a minimum strike length of approximately 800 metres. The Company is pleased to note that the deepest holes completed to date at the Main Dyke continue to show excellent spodumene content and consistent widths.”
This is a step-by-step approach and Grid is on track. The company states, “Resource drilling at two known LCT spodumene bearing dykes is expected to be completed by end of March 2023 to be followed by an initial NI 43-101 resource estimate.”
From an investor’s perspective, drill reports are reassuring. Grid is pretty certain that the dykes it has identified contain economically attractive quantities of spodumene and each set of drill results has increased that certainty. The market, as ever sceptical, will probably wait for the completed 43-101 resource estimate before re-rating Grid.
As I said in my earlier article about Grid, the strategic investors who have freed Dunbar from having to sell shares to raise money, are not looking for $0.10 gains on their investment, they see a potential which would lead to real value and re-ratings as Grid moves closer to production.
For a lot of lithium juniors, both hard rock and brine, “production” requires CAPEX of several hundred million dollars. Grid is on track to avoid that problem. “An Advanced Exploration Permit application is being prepared which would enable a bulk sample which planned to be completed at the nearby Tanco Mine – Canada’s only hardrock lithium producer. Grid has a MOU in place with Tanco for possible toll milling at the Tanco Mine.” (That’s a picture of the Tanco mill at the top of the page.)
Skipping the spodumene mill stage and expense is a huge bonus for Grid. From exploration to production without the capital costs and risks associated with mill construction changes the timing and economics of Grid’s lithium project. A lot and in the right direction.
[Disclaimer: This is not investment advice. I am not an investment professional. I am down about 30% at the moment on my overall portfolio. I will write about companies that I hold. I will disclose any holdings. Do your own due diligence. Do it hard. Call the CEO.
I currently own shares in Grid which I intend to hold but which I may sell at any time.
Grid is a client as well as a holding.]