Some companies were surging yesterday

Author

Wingman
February 23, 2024

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Honestly, I'm not a big fan of the way they've structured this news release. Personally, it just reads oddly to me. But regardless of my opinion, the stock performed well on Wednesday, closing at C$0.60 🔼 0.105 (21.2%).

What are your thoughts on using a uranium price of $75 a pound for the PEA? Fair? Conservative? Too high?

From first glance, the AISC is low, the IRR is high and the payback is under two years. Looks like some pretty compelling economics.

It closed yesterday at C$0.07 🔼 0.005 (7.7%) and below average volume.

Not sure what investors were expecting and we don’t play in the uranium market, but seems okay with an 11 year mine life no?

Key elements of the Instructive and transition authorization resolution include:

  • Recognition by the Ecuadorian State of pre-operational investments made within the mining concession area;

  • Explicit acknowledgment of sectoral regulations applicable to the mining concessionaire;

  • Specification of authorized activities during the production phase;

  • Provision for extending the production phase period if new mineral resources are discovered or if the original term is deemed insufficient for full production from mineral reserves;

  • Authorization for the construction of necessary mining infrastructure and associated civil works;

  • Responsibility of the concessionaire to diligently fulfill its environmental obligations as outlined in its environmental license.

  • Responsibilities of the State during the production phase, including coordination and support for normal mining operations, provision of timely precautionary measures, and collaboration in relationships with public sector entities and third parties, and;

  • Rights granted to the mining concessionaire, such as freedom to trade minerals, suspension of terms due to exceptional events, and prompt response from competent authorities in case of threats or illegal activities.

This was released after hours yesterday.

That’s quite a compelling headline

Mr. Greg Reimer, Chief Executive Officer and Director, commented, "We are thrilled with today's maiden MRE results as they solidify that the NNLP is a significant lithium deposit and one of the highest-grade lithium clay deposits worldwide. At higher grade cutoffs, there are still very appreciable volumes of lithium that are largely contained in the clay horizons nearest surface. We will continue to derisk the NNLP through metallurgical test work, technical studies and permitting. As well, we expect to continue to expand our known resource and certainty around it through drilling."

*A maiden resource estimate is the first time a resource has been announced, or at least the first time it has been compiled to modern standards.

Derrick through metallurgical test work, yes.

But again, the market really liked this news yesterday as it closed at C$0.52 🔼 0.055 (11.8%).

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