Orocobre Limited

Cauchari JV Drilling Update: Orocobre Limited (ASX: ORE) witnessed a share price rise of 3.2% on March 08, 2018, while it was down about 13.78% in last one month. The group has lately announced the result of the pumping test conducted on CAU07 in the NW sector of the Cauchari JV properties in Argentina. CAU07 was drilled to a depth of 343 m in the north of the NW sector. This drill hole intersected some clay units and material thickness of sand and gravel dominated units with favourable porosity and permeability characteristics. Further, this has been the first pump test in this area and the results reflect the quality of the sandy aquifers; and this will assess positive result for full year. Moreover, drilling continues in both the NW and SE sectors and ORE is moving ahead to producing an upgraded resource for the NW and SE sectors. Additionally, for Olaroz Lithium Facility, approximately 14,000 tonnes of production of lithium carbonate are expected for FY18. For Borax Argentina, production forecast is of 35,000 - 40,000 tonnes for FY18. The corporate costs are expected to be of ~US$6 Mn for FY18. With the potential the stock has, to regain its lost momentum, and medium term trends in lithium sector expected to stay somewhat intact;we give a “Hold” recommendation on the stock at the current price of $5.81
 

Location of CAU07 and other Cauchari drill holes (Source: Company Reports)

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