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Lepidico Ltd

Lepidico Ltd

Lepidico is an ASX listed company that owns the L-Max® technology. This technology enables the processing (leaching) of lithium chemicals from lepidolite-micas in contrast to traditional lithium producers which process spodumene or petalite mineralisation to produce a concentrate. This provides Lepidico with a unique advantage as lepidolite-mica mineralisation has been ignored in lithium deposits in the past.

Lepidico or its partners have commenced or are preparing to drill on a number of projects to rapidly build a lithium inventory which can be processed by the Company’s patented L-Max® technology. These projects are:

  • Defining a lepidolite-mica resource at the Alvarrões mine in Portugal.
  • Defining lepidolite-mica mineralisation at the Separation Rapids project in Kenora, Ontario.
  • Testing the PEG009 lepidolite-mica prospect at the Pioneer Dome prospect, WA.

The building of a resource inventory is now a priority following the Company’s positive pre-feasibility study on the Phase 1 development of the L-Max® technology. This technology can extract Lithium (Li) from Li-rich mica minerals such as lepidolite while the industry itself has typically focused on hardrock spodumene deposits or brine deposits.

As noted in our earlier research, the pre-feasibility study findings focused on a Phase 1 commercial project as follows:

  • Production of 3,000 tpa battery grade lithium (LCE) C1 costs at nil after by-product credits.
  • Kenora, Ontaria has been selected as a likely site
  • Total project value at commissioning is estimated to be around US$190m using a 10% discount rate and a US$10,000 per tonne lithium (LCE) price. This equates 3.9 cents per LPD share after a recent capital raising.

After potentially establishing a resource inventory by the end of 2017 and in alignment with a completed positive feasibility study, we expect Lepidico will be in a position to commence the Phase I Project development in Kenora, Canada.

Lepidico (“LPD”) owns the L-Max® technology – a technology which enables the extraction of lithium from lithium micas like lepidolite.

The L-Max® technology leaches the lithium in a relatively straightforward process using commonly available reagents. The process produces a number of valuable by-products and this value offsets the cost of producing lithium on a C1 cash cost basis (estimated by the Company’s pre-feasibility study). The Company has released project parameters for its DFS and seeks to fast track development for first production in 2019.

Our recommendation is a SPECULATIVE BUY for LPD. The Company has access to valuable technology which could create a leading position in the lithium market in the short to medium term. The next step is developing a resource base to provide feed to its future L-Max® plants and combining this with a positive feasibility study outcome towards the end of 2017 should significantly de-risk the project and translate into a higher share price.

Lepidico is an ASX listed company that owns the L-Max® technology. This technology enables the processing (leaching) of lithium chemicals from lepidolite-micas in contrast to traditional lithium producers which process spodumene or petalite mineralisation to produce a concentrate. This provides Lepidico with a unique advantage as lepidolite-mica mineralisation has been ignored in lithium deposits in the past.

Breakaway Research published an initiation report on 15th March 2017 which provided investors with an overview of the L-Max® technology process and evaluated data from the Company’s prefeasibility study. This study proposes the construction of a new plant at Kenora in Ontario, Canada...

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More details about Lepidico Ltd

Official website: http://www.lepidico.com

ASX on Hotcooper: http://hotcopper.com.au/asx/LPD

Markets: Base Metals