A Cantor Fitzgerald note reviewed new findings
from this joint venture asset in Argentina.
In a Sept. 18 research report, Cantor Fitzgerald analyst Matthew O'Keefe
described Advantage Lithium Corp.'s (AAL:TSX.V; AVLIF:OTCQX)
recently announced results from Cauchari as "positive" and
"returning good lithium concentrations and basin continuity." The
data are from the company's phase 3 infill drilling and resource conversion
program at its 75%-owned project in Argentina.
Drilling could add 1.43–3 million tons of lithium carbonate equivalent
(LCE) to Cauchari's current resource that, already "large," stands
at 3 million tons of LCE, indicated O'Keefe.
Relaying the recent findings, Kaip noted lithium brine was continuous
between holes CAU07, CAU16, CAU17 and CAU18, all in the northwest sector.
Brine sampling in holes CAU20 and CAU21, in the north aspect of the northwest
sector, averaged 629 milligrams per liter (629 mg/l) lithium and 4,537 mg/l
potassium from a 113–318 meter depth. It averaged 607 mg/l lithium and 4,691
mg/l potassium from a 125–265 meter depth.
O'Keefe pointed out that "grades and chemistry are also better than
the current resource, which bodes well for a resource update,"
anticipated in Q1/19. A definitive feasibility study,a "key derisking
milestone paving the way for project financing," would follow in Q2/19.
With the completion of that study, "we expect the stock to rerate
higher," he wrote.
Drilling with four rigs continues, noted O'Keefe, and Advantage Lithium
will continue to release results.
Also, it is developing infrastructure, including monitoring wells and
pipelines, to effect 30-day pumping tests on test production wells CAU07 in
the northwest sector and CAU11 in the southeast sector. The information
yielded from the pumping tests, slated for Q4/18, should help estimate
lithium reserves and create a project production schedule.
Cantor Fitzgerald has a Buy rating and a CA$1.50 per share 12-month target
price on Advantage Lithium. The company's stock is currently trading at
around CA$0.69 per share.
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