Imminent lithium producer, Orocobre (ORE), has made a truly game-changing announcement regarding its already world-class project, Olaroz

Imminent lithium producer, Orocobre (ORE), has made a truly game-changing announcement regarding its already world-class project, Olaroz. The company drilled a second deep hole (323m) approximately 1.2 km South of a first deep hole, with both demonstrating a brine-rich sand-unit that is at least 100 metres thick. Key here however is that the sand unit has 20-25% porosity - compared to the existing resource, which has ~10% porosity. This results in a brine that flows more freely, allowing a higher rate of pumping. Remarkably, this new find has already been commissioned and is now in production, lifting pumping capacity to over 230l/s (versus steady state production of 180l/s). A larger resource is valuable, but given the already multi-decade mine life, it is this increased pumping capacity that makes this new find the game-changer. Luke Smith, Head of Australian Mining Research for Canaccord Genuity (Australia), has updated his model on this incredible find, leading to an increase of his price target from $3.91 to $4.20 (versus last traded price of $2.75). Luke's updated research is here: (VIEW LINK)