Kidman Resources (KDR) - Re-rating on lithium exploration

Kidman Resources (KDR) is a small gold producer at the Burbanks Project. More recently it purchased the Mt Holland gold project for $3.5m – a fully permitted project with granted MLs and extensive infrastructure in place. Aggressive drilling underway to extend the current 1.2Moz resource @ 2.7g/t contained in multiple deposits. KDR believes they can develop this to a 100Koz/p.a project with Low CAPEX, targeting to complete feasibility studies by end of year. Following the Mt Holland acquisition, the team commenced a program to understand Lithium potential with 100’s of historic drill holes which had not been assayed for lithium. Two high-grade lithium-bearing pegmatites discovered… Bounty and Early Grey along with the Texas 6km long pegmatite mapped at surface. Samples re-assayed from historic holes uncovered intersections ranging from 20-100m grading at 1.5-2% Lithium indicates Mt Holland has world class resource potential. Program including diamond and RC holes (together with historical drilling data) could deliver a 50Mt resource at +1.5% Li , hence a world class hard rock Lithium project, which could command a +$200m market capitalisation.