At time of writing, the share price of Lepidico Ltd [ASX:LPD] is up 6.67%, trading at $0.016 per share.
It’s been a tough year for the share price:
The most recent news out of the company is with regards to three drilling campaigns and its pilot plant in Perth.
Share price of Lepidico reacts to updates
The first of three updates relays information about drilling in Alvarrões in Portugal.
According to the company:
‘[The drilling] program has identified multiple subhorizontal lepidolite-bearing pegmatites including intercepts of 4 m @ 0.86% Li2O and 3 m @ 0.85% Li2O from what is provisionally designated as “Sill E.” Particularly encouraging is that each of the 14 holes intersected anomalous lithium mineralization.’
The second update, also in relation to Alvarrões states the following:
‘The drilling continues to intercept multiple sills of lepidolite-bearing pegmatite, with the closer drill hole spacing identifying variations in sill thickness, position (depth) and lepidolite content. The overall average lepidolite content is expected to remain around 15% – 20%, or approximately 1.0% Li2O.’
Lepidolite is a lithium bearing mineral and is associated with other lithium bearing minerals like spodumene in pegmatite bodies.
The third update is about their Youanmi Site in Western Australia:
‘[The] second round of RC drilling at Youanmi confirmed the down-dip continuity of the main pegmatite at Target 1, but additional drilling through the complex array of pegmatites at the central Target 2 zone did not clarify the orientation or continuity of the individual pegmatites in this area.’
Additionally, their pilot plant has entered the implantation phase and reached a major milestone with all major items of mechanical equipment ordered.
The plant leverages the company’s L-Max® technology, which aims to develop untapped sources of lithium such as lepidolite, zinnwaldite and amblygonite, which are discarded in spodumene focused operations.
What does the future hold for Lepidico?
As with other lithium plays, the decline in share price of Lepidico has mirrored the decline in lithium prices since the beginning of the year:
Source: Benchmark Mineral Intelligence
Greater uptake of electric vehicles could eventually drive prices up.
Earlier in the year, China removed subsidies for electric vehicles and a number of major projects came online in response to rising prices.
An in depth look at the state of play for lithium can be found here.
It is also interesting to note that Portugal expects to launch a tender for lithium exploration licenses next year. This comes in addition to a proposed lithium refinery.
So there is some growth in the lithium scene in Portugal — something Lepidico will be looking to capitalise on.
For Money Morning