Next Investors logo grey

American Pacific debuts first assay results from California

Published 15-NOV-2017 16:07 P.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Having acquired a string of lithium/borate prospects earlier in the year, ABR last week received its first set of independent test results from its flagship Fort Cady Lithium Project. The prospective region is adjacent to Nevada, a state made famous as the epicentre of global lithium-ion battery production thanks to Tesla.

The assay results received thus far confirm the presence of an “extensive zone of borate and lithium mineralisation” and a “third deeper interval” with significant intersections, including:

fort cady intersections

ABR’s exploration strategy is predicated on a historical Resource Estimate defined during the early 1980s, with the company commencing its 6800 meter drilling program to confirm and update the previous estimate to modern-day standards.

ABR has informed the market that it has now completed five drill holes at Fort Cady with four drill rigs currently operating.

American pacific drill rig

Core samples taken from Fort Cady have been submitted for analysis, with results expected intermittently over the coming weeks. ABR’s brine samples, taken from the first completed lithium brine drill hole located northeast of Fort Cady, are also being evaluated.

If ABR’s strategy proves successful, the company could expect to make rapid advances in exploration with a view to commencing a Feasibility Study in early 2018.

Those considering this stock shouldn’t make assumptions regarding future sales, nor should they base investment decisions on performances to date. Those considering this stock should seek independent financial advice.

Currently, its Resource Estimate is as follows:

american pacific results

The current work program includes a total of 14 drill holes (five completed), lithium brine drilling, leaching test work, a Scoping Study and the definition of ABR’s Maiden Resource, currently scheduled for Q4 2017.

The below map indicates the location of the historic resource estimate sample areas:

American pacific resource

ABR expects to receive assay results for three additional drill holes between now and the end of the year and will also receive an update regarding its first batch of lithium brine.

ABR Managing Director and CEO Michael Schlumpberger said, “These results confirm what we already knew from the historical drilling – that Fort Cady contains an exceptionally thick sequence of borate mineralisation. We are also highly encouraged by the lithium concentrations in the borate mineralisation.

“We will now fast-track leaching testwork on drill core samples to determine what quantity of lithium can be extracted along with the boric acid during solution mining. We are confident we have a compelling boric acid development opportunity.”

Michael Schlumpberger

ABR Managing Director and CEO Michael Schlumpberger

Given the current focus on capital expenditure and commodity-industry competitiveness, ABR could earn a further premium for its ore from Fort Cady because lithium by-products “have the potential to enhance the project metrics and take the Project to the next level,” Mr Schlumpberger said.

Increasing lithium market interest by adding borates

A dual-commodity project including boric acid and lithium provides ABR with the opportunity to achieve lower lithium production costs when compared to its closest competitors in the lithium industry.

By focusing on borates and using efficient processing, ABR can produce high-grade lithium carbonate as a by-product in a similar vein to how Chilean lithium major SQM produces lithium from its potash production.

If ABR can integrate borates into its lithium production, the small cap could establish an early-mover position in the lithium sector.

By producing two commodities critical for energy storage, ABR is setting itself up to benefit from the consumer-driven explosion in electronic goods powered by lithium batteries.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.