Orocobre Limited (ASX: ORE), a producer and explorer of minerals, announced on 26th April 2019 that NI 43-101 Technical Report published by Advantage Lithium Corp., an operator of the Cauchari Joint Venture, contains no material difference, as compared to the resource estimation posted by the company on 7th March 2019.
The independent technical report “NI 43-101” depicts the estimated resources on the Cauchari JV brine deposit in Jujuy Province in Argentina. Orocobre owns 35.5% of the company’s issued capital and holds a 25% direct interest in the Joint Venture.
As per the company, based on a drilling campaign conducted by the company in 2018, the updated resource estimation increased the volume of 1.9km3 of brine at an average concentration of 476mg/I lithium equivalent.
The elaborated resource estimate for Cauchari Lithium Project:
The company updated the resources to 4.8 million tonnes of Lithium Carbonate equivalent under the Measured Resource and Indicated resource category (JORC 2012 Edition Classification), and 1.5 million tonnes under the Inferred Resource category.
As per the update dated on 7th March 2019, the 0.6km3 and 1.2km3 of brine under measured and indicated category average around 476mg/I and 473mg/I under the inferred category.
The company recently posted the best March quarter of its Olaroz Lithium Facility.
As mentioned above the independent technical report by the Advantage Lithium Corp. contains no material difference.
However, there are few ignorable differences in the estimation, which does not hamper the resource estimation considerably.
In an announcement made on 18th April 2019, Orocobre mentioned that the Advantage Lithium Corp. engaged WorleyParsons Chile S.A to complete the Pre-Feasibility Study (PFS) of the Cauchari Joint venture prospective.
As per the announcement, the Pre-feasibility Study intended to evaluate the processing options of 30 thousand tonnes per annum final lithium product along with the range analysis of those products, which includes lithium hydroxide.
Share Price Movement:
The share price of the company plunged significantly in the past few trading sessions. The price dropped from its recent high of A$3.880 (Day’s high on 8th April 2019) to the level of A$3.240 (Day’s low on 23rd April 2019). However, the price recovered slightly from the level of A$3.240 to the level of A$3.360 (Day’s high on 24th April).
The recent drop in the prices of the company’s share price marks a decline for the second consecutive month. The share price initially rose from the level of A$2.910 to A$4.040 in February 2019. After touching the high of A$4.040 (on 27th February 2019), the prices plunged significantly to the level of A$3.190 (on 27th March 2019).
After the significant drop in March 2019, the prices recovered in April 2019 to the level of A$3.880, from where the prices again started moving in a downtrend. However, the low in April so far (as on 26th April 2019) of A$3.240 is up, as compared to the low of March 2019 (A$3.190).
The stock of the company closed the day’s trading at A$3.300 (as on 26th April 2019), down by 1.493% as compared to its previous close.
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