PepinNini Lithium flags JORC Resource restatement
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
PepinNini Lithium (ASX:PNN) will pursue a JORC 2012 Resource restatement, following its decision to discontinue the exploration purchase option covering Patilla Mina on Salar de Pular in Argentina.
PNN is a diversified ASX small-cap focused on exploring and developing a lithium brine resource and production project in Salta Province Argentina within the Lithium Triangle of South America. The company also holds strategically located exploration tenements in the Musgrave Province of South Australia, as well as a copper-gold exploration project in Argentina's Salta Province.
The restatement itself covers brine within PNN’s 100% owned Suifa 1 Mina (mining concession), including exploration activities carried out by the company last year.
The Resource, as shown below, consists of low grade lithium carbonate (LCE) measuring 91,000 tonnes and Inferred 82,000 tonnes and includes a potash (KCL) resource. The company is currently evaluating the potential to blend this brine with brine from its other holdings to produce a feasible higher grade product.
The Resource estimate was prepared in accordance with the JORC Code 2012 and uses best practice processed specific to brine resources, including core drilling and sampling methods that yield depth-specific chemistry and effective drainable measurements.
The estimation was completed by independent competent person, Michael Rosko, M.Sc., C.P.G. of the international hydrogeology firm E.L. Montgomery & Associates.
More about the Resource restatement
The total area of the polygonal blocks used in the updated Resource calculation was 5.9km2. The polygons used for calculation are shown in red in the map below.
The initial total area for the Resource estimate reported in July 2018, including all tenements, was 16.024km2.
Eliminating the Patilla tenement, subject to the discontinued exploration option, results in a sizeable 63% reduction in the total area in the concessions being used for the resource estimate.
To recalculate the Resource for Sula Mina only, the initial polygons were not redrawn around the exploration boreholes, as was done in July. Due to the confidence of Rosko (competent person) in the initial Resource estimate, he eliminated that part of the resource that was not calculated from Sulfa Mina and did not redraw the polygons.
This aside, all other aspects of the initial resource estimate were maintained, including assumptions around basin boundaries, unit thickness, brine grades and non-inclusion of fresh and brackish water areas.
Polygons 1, 2 and 4 are considered a Measured Resource, and Polygon 5 is still considered an Inferred Resource. Polygon 3 was located completely in the Patilla Mina and is therefore not within the considered resource calculations.
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.