ree projects, page-4

Re: Kindlings analysis of AFU

"In-situ grade: Average – 2.5%; -REO Conc grade: Poor – 5%; -Deposit size: Medium – 1.2mt, similar to Lynas;
-Capex: High $1.4b+".

WOW that seems an extraordinary capex to get a concentrate uplift to just 5% compared to a grade of 2.5%. Hardly worth bothering??? I note GGG has a lower in situ grade around 1.1% but the concentrate outcome (albeit ONLY a pilot)is now 15%; and the GGG resource size is 11 mt SO FAR for GGG - potential to be multiple of this (compared to 1.2mt for AFU) .....

Summary:

GGG ARU
IN SITU GRADE 1.08% 2.6%
CONC GRADE 15% 5%
REO prod p.a. 52k 20k

DEPOSIT SIZE 10.7mt 1.2mt
CAPEX $1.3b $1.4b


GGG does have sovereign (environmental) risk aplenty, but it stacks up well! I can't help thinking that if the ore REALLY runs under the entire Kvanevjeld Complex as hypothesised then GGG has a "lifetime supply" of rare earths....

There is a comparison of RE players in AFU AGM presso (page 21) at http://www.asx.com.au/asxpdf/20121130/pdf/42bmj2djxdtcg6.pdf which is interesating.

Keep up the analysis Kindling!!