A Haywood report discussed the results from seven holes drilled at this company's project, as well as upcoming catalysts.
In a Jan. 31 research note, analyst Colin Healey reported Plateau Energy Metals Inc (V:PLU)'s new drill results show Falchani West "continues to suggest large resource potential, which is consistent with our expectation that the total resource at the project can easily double from the maiden estimate with more drilling."
The recently released results are from four holes at Falchani West and three holes at Falchani East. Results from four additional completed Falchani West drill holes remain outstanding.
Healy relayed that the just-reported holes in the west demonstrated the expansion of mineralization previously identified through surface sampling and mapping. Hole PLAT33-V, for instance, showed 200 meters (200m) of 2,519 parts per million (2,519 ppm) graded lithium from 117m downhole in thin upper brecchia, tuff and lower brecchia, including a 156m intersection within the latter averaging 2,624 ppm lithium from a 161m depth. Also in this hole, lithium values up to 4,862 ppm were detected. Mineralization is shallower than in the east.
The prospect is good for Plateau Energy to add to the existing resource before its next update, Healey pointed out. The thickness and grade of the lithium-rich lower brecchia, which are superior to those in the east, "should build resource tons quickly," he noted.
Preliminary metallurgical testing on this brecchia indicates leaching qualities like those of the main tuff unit and, therefore, suggests potentially similar economics, which is positive. "Good grades plus compatible metallurgy would mean a significant resource contribution from this material," added Healey.
The results from the east holes revealed the thickness and grade of the tuff unit were better than initially expected.
Coming up shortly, Plateau will recommence drilling with three rigs, aiming to extend mineralization to the west and to the north of Falchani West.
In late March, the company intends to release a resource update for Falchani, and Haywood recommends accumulating stock in advance of that "critical" catalyst, Healey indicated. The share price at the time of writing of CA$0.66 is "an attractive entry point." Haywood's price target on Plateau Energy is CA$3, and it is rated a Buy.
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