Sometimes companies are just lucky, and Pilbara Minerals (ASX:PLS) definitely falls into that category. Its share price was trading at less than A$0.04 just two years ago, but the company was able to take advantage of the current lithium boom as it quickly advanced the Pilgangoora tantalum-lithium project in Western Australia.
In its most recent resource update, Pilgangoora confirmed it increased the total tonnage by approximately 22% to 156 million tonnes (in all resource categories) at an average grade of 1.25% spodumene and 128 g/t tantalum-oxide. Within this resource, the company has also identified a higher-grade resource containing 110 million tonnes at 1.44% Li2O.
With this resource estimate in hand, Pilbara Minerals can now complete its final mine plans for the Pilgangoora project which is expected to be commissioned by the end of this year. It has now also been confirmed the iron-oxide in the resource won’t result in a pricing penalty on the value of its spodumene, as the Fe2O3 could apparently easily be removed from the final product.