Galaxy Resources Ltd

James Bay moves an inch towards developing into a long-life lithium resource: Galaxy Resources Ltd (ASX: GXY) is out with the result of final assays from its 2017 drilling campaign at the James Bay Project in Quebec, Canada. Earlier this year, GXY commenced a 33,000m diamond drilling campaign at James Bay to extend and develop the existing James Bay spodumene resource. The drilling program is now complete, and all assays have been received. Mineralized pegmatites have found to outcrop at surface and the drill program has targeted 2,360m of known pegmatite strike and outcrop west of the James Bay Highway. Assays from exploratory drill holes east of the highway which have also retuned economic grades in the pegmatite, have been included in the result. The group aims to focus on resource development, an updated recoverable resource estimate and the project feasibility study for pegmatite mineralization west of the James Bay Road. The known pegmatite mineralization east of the James Bay Road, which was tested using scout drilling, is said to now require further confirmatory drilling. The group will prepare a revised mineral resource estimation and upgrade to be finalized by early November 2017 basis the completed round of drilling. The outcome now strengthens James Bay Project’s significance as a hard rock, high grade, and long-life lithium resource. GXY will progress with studies for the development of a mine and concentrate operations at James Bay.

For the Mt Cattlin Production Project, the group had attained an average run-rate of c 190,000 dmt pa, as at Q3 2017. The group is now putting efforts to improve recoveries to 70-75%. In last three months, GXY stock has moved up over 103% (as at October 25, 2017). However, the stock fell 6.5% on October 26, 2017 apparently owing to some profit-booking.


James Bay Spodumene Project (Source: Company Reports)

Pilbara Minerals Ltd

Re-confirms to achieve first production in Q2 2018: Pilbara Minerals Ltd (ASX: PLS) has provided its quarterly activities and cashflow report with unrestricted cash balance at 30 September 2017 of $78.95m, lower than the previous quarter figure of $87m (30 June 2017), owing to few items of expenditure that included $30.4M on the construction and development of the Pilgangoora Project, $3.8M on interest payments and other administration and corporate costs. PLS has also reported about meeting the conditions precedent to the drawdown of the US$100m bond facility in support of the balance of the Stage 1 capital costs. Under the group’s A$228m debt and equity raising effort for Pilgangoora Project development, $15m Share Purchase Plan (SPP) was closed oversubscribed in July 2017. The group has recently partnered with Great Wall Motor Company, automotive manufacturers, to further underpin the Stage 2 expansion of the Pilgangoora Project (under binding terms sheet). Stage 2 expansion of the Pilgangoora Project will thus now be driven by the Great Wall and Ganfeng Lithium off-take arrangements. The group’s target to achieve first production in Q2 2018, is finding support from many contracts and other engagements including open pit mining contract being awarded to MACA Limited, site power contract awarded to Contract Power Group, and Stage 2 of the Engineering, Procurement and Construction (EPC) contract for construction of the 2Mtpa Concentrator awarded to RCR Tomlinson. Like GXY, PLS stock also fell 5.6% on October 26, 2017.

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