By Ephrems Joseph
After raking in some serious gains during its ASX debut in early January, Kali Metals has delivered some strong news flow across its lithium tenements in Western Australia and the Lachlan Fold Belt in NSW and Victoria – despite the market’s sombre sentiment towards spodumene.
After the initial fanfare during which the lithium explorer clocked up to A$0.89 – a 250% jump from its IPO which was priced at A$0.25, the stock has been trading steadily in the A$0.39 - A$0.47 range since February, backed by some positive news flow on the ground (Figure 1).
Supported by bigwigs such as MinRes, Wabelo and Warburton, the company claims that its portfolio of assets represents one of the largest and most prospective exploration packages across Australia.
Figure 1: The share price chart for Kali Metals Limited (ASX: KM1). (Source: Share price chart)
What is happening on the ground?
Soon after the listing, the company identified lithium-bearing pegmatites across multiple locations within its Higginsville District tenement holding in Western Australia, with initial rock chip samples returning assays up to 3.69% Li20 at Spargoville (Figure 2), one of eight projects within the portfolio.
Subsequently, Kali resumed its large-scale soil sampling program at the Higginsville Lithium District, with its first lithium-focused drilling program at the Spargoville Project.
Furthermore, the company delivered more high-grade lithium in soil and rock chip sampling at Spargoville and Widgiemooltha projects – with assays at Spargoville returning results up to 5.05% Li20. (Figure 2)
Figure 2: The reported rock chip results at the Spargoville and Widgiemooltha projects. (Source: Spargoville and Widgiemooltha assays)
Most recently, Kali gained new ground with the acquisition of a 226-square-kilometre strategic landholding with tin-tungsten and lithium-caesium-tantalum rights to the Jingellic Lithium Project in the Lachlan Ford Belt (Figure 3).
The new tenement rights “fill the geologic gap” in Kali’s Jingellic Lithium Project and allow for continuous exploration across the Lachlan Fold Belt Project.
Figure 3: Kali Metal’s Lachlan Fold Belt projects. (Source: Lachlan Fold Belt Tenement Map showing newly acquired tenement location)
Background
Kali Metals is a spinout of Kalamazoo's Australian lithium assets.
The company’s 3,854 square kilometre portfolio of assets comprises (Figure 4):
Pilbara Region, WA: The DOM’s Hill, Marble Bar, and Pear Creek Lithium Projects including title and all exploration rights.
Eastern Yilgarn Region, WA: Lithium rights across the entire Higginsville Lithium Project
NSW / Victoria: The Jingellic and Tallangatta Lithium Projects, including the option to earn a 100% interest in the MEG Lithium Rights at EL8958, located adjacent to the Jingellic Project.
Kali’s board of directors comprises an experienced management team led by Graeme Sloan as managing director and Kalamazoo Resources’ Chairman/CEO, Luke Reinehr as Non-Executive Chairman.
They are supported by Non-Executive Directors Paul Adams, John Leddy and Simon Coyle.
Samso's Thoughts
Lithium has never been my go-to commodity. I understand the need and the fascination with its future needs in our electrification evolution. I feel that this is like a game for the big players. The lithium industry is like the DSO (Direct Shipping Ore) industry, it works well with scale. Kali has the backing of some very high-profile shareholders and in this industry, you need these kinds of shareholders to succeed in an industry that is all about perseverance in terms of patience and the ability to raise money.
I have been in this game for a long time and the "ducks" lining up is also very important. There is a reason why high-net-worth individuals do well. They know when to quit and when to double down on their investments.
Time will tell where Kali goes but from the first indication, this is a good DYOR stock.
Get Deeper Insights
The latest and most reliable information from experienced sources, that are completely unbiased are now available through a Paid Membership. Sign up here for a more trustworthy source of well-researched and independent information for investors.
-------
Disclaimer
The information or opinions provided herein do not constitute investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein. It does not take into consideration, nor have any regard to your specific investment objectives, financial situation, risk profile, tax position and particular, or unique needs and constraints.
------
About Samso
Samso is a trusted platform that equips dedicated investors with up-to-date industry knowledge and insights from top CEOs and thought leaders. By staying informed on business advancements and market trends, investors can enhance their financial decisions through a combination of expert guidance and their own research.
Comments