I went to the road show yesterday and if you read the company presentation you will see most of what was said. The important thing is to read the presentation because it is really TWO presentations. The first is for the known resource of friable itabarite that can go through benefication and be a premium product, the second is for the newly discovered Hematite DSO. There are TWO business cases laid out and either one will make for a profitable project. The quickest and cheapest is to dig the DSO, crush it and ship it. Cost per ton FOB would be approx. $22-$23. That leaves a nice margin if IO is at $50/t
The DSO is within the itabarite resource, so therefore digging the DSO out first will open up the pit to take out the itabarite.
On page ten of the report you will see a map of the targets. The target in the north east of the southern license with two yellow marks is Goehn (note that the road runs right by the target), now turn to p11 and you will see that there is a minimum of 120m strike of DSO on that hill.
P13 shows the typical cross section of the Bomi Hills (of which this is an extension).
With these notes PLEASE re-read the presentation. This is a super low capex start up that can deliver high grade IO to Europe very cheaply.
The drilling of the DSO will start after the wet.
I will be buying more at these levels
I am happy to try to answer any questions you might have, but please read the presentation first.
Cheers
Neptune (the insomniac)
TAW Price at posting:
0.5¢ Sentiment: Buy Disclosure: Held
