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Artemis Resources (LON: ARV) shares up 12% on lithium find

It’s modest news as yet but there may well be something there

Update : 10 Jul 2023, 02:55 PM

Artemis Resources (LON: ARV) (ASX: ARV) (OTCQB: ARTTF) shares are up 12% on news of a lithium find. ARV shares though are reacting to the very early stages of news about a lithium find. This is still a long way from a proof that there's anything worth mining - but encouraging news all the same. 

It's worth pointing out again that mineral exploration goes through a number of stages. Early geological work from aerial assays and so on, then early stage drilling, then proper drill campaigns to map out a deposit, all the way through to working the full definitive feasibility study. Each of these stages costs money - obviously - and a failure at any stage means the subsequent ones are not undertaken. Why bother if it's failed a test? This then flows through into how exploration companies are financed. As there's no asset until exploration is finished (the production of that DFS) debt finance is not possible. So, everything comes from shareholder capital. But no one raises enough, right at the start, to fund right through the process. Why would you? Some projects are going to fail at one or more of he earlier hurdles. So, financing is done in stages. Raise enough capital to pass the one test, do that successfully, raise a bit more and so on.

Artemis Resources share price from London Stock Exchange

The actual announcement from Artemis: “Artemis Resources Limited (ASX: ARV) (Artemis or Company) is pleased to advise that lithium pegmatites have been identified on the Osborne Joint Venture (Greentech Metals Ltd 51% / Artemis Resources 49%).

“As announced by GreenTech Metals Limited (ASX: GRE) in the ASX release of 7 July 2021, GreenTech announced that the Kobe Lithium Prospect extends into the Joint Venture exploration licence E47/3719. The mineralised trend defined to date within JV tenure is shown in Figure 1 below. High tenor lithium assays received within the project area include”

The point for us to understand here is that this is still at a very early stage. Yes, the right rocks (pegmatites) have been found. Also, some interesting lithium values have been found in some of those rocks. It's even true that this seems to be an extension of a mineral deposit from the claims next door. But that's all we've got to so far. This is not proof that there is indeed a lithium deposit there worth mining. 

Thus the rather muted reaction to this news. Plus, and this is something that we think rather than it being a general market view as yet, there are so many lithium finds being made that each extra one is of ever less value.

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