Allways good to have a larger resource and a longer mine life. On production and costs have a look at London Mining's Half Year 2014 Presentation at http://www.londonmining.com/
Slides 5 and 6 might answer your question.
They spoke of Low Capital intensity and Scenario to expand to 8 Mwmt compelling. Slide 5 indicates that the cost per ton goes down with increase in production. I suspect that would go down even further by using African Minerals Port facilities.
On the Port Facilities remember that CFE has an agreement with African Minerals to ship ore out via their Port and that might be another reason why Frank Timis has tied the CFE Marampa mine into the deal. The African Minerals board may say to Frank that he cannot ship the London Mining Ore out via the Port but I'm certain that they have an agreement to ship CFE Marampa out via the Port.
If they say no to London ore going out via the Port then Frank will mine from CFE Marampa sooner. Which brings our $3 to $5 per ton for 100 Mwmt into play sooner.
CFE Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
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