The WIM150 deposit is a monster in size, but the fine grained nature of the contained sands has meant it has defeated past attempts to commercialise it. So yes, X7 or X3 or X1.8 times zero is indeed zero.
But as I noted, if the guys at APG really have cracked the agglomeration technology then that will allow the deposit to be treated commercially. If so, we enter a whole new ball game as the deposit would then be worth a motza.
History is littered with new technologies that have revolutionised the economics of mining and mineral processing. Just look at flotation technology (an Australian invention too) that allowed the profitable treatment of ore bodies once cast aside as unprofitable, or heap leaching that transformed the economics of processing some ores.
If APG's agglomeration technology is as good as it is rumoured to be, it will similarly revolutionise the economics of fine grained mineral sand deposits.
Whether this is fully reflected in APG's share price I will leave up to Mr Market to decide. In the meantime, I am happy to be sitting on my pile of APG shares and contemplating a rosy future.
APG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
