Ann: Development Progress - Lindi Jumbo Mine, page-1981

Hi sparecash,

You do keep showing how out of depth you are with understanding the project,

The announcement states "High Grade Material is visually very distict from the waste" They are two different types of geology, of course the will be visually different, Have you noticed It does not say the higher grade material is visually distict from the low grade mineralisation. As you would know the low grade 1-10% was being sent to a seperate stock pile, we have long said that the variation of the orebody will end up with blended or significant more drilling to validate what is production feed and what is being sent to the low grade stock pile.

@Farmdownsouth That isn't great news for shareholders. Deffered costs of US$20mil appears to be where Gemcorp will see their US$6-8mil bonus.
Seems a little unfair that WKT will then have to pay the US$20mil in mining costs after Gemcorp has left the building.




you really have to wonder why the bulls are all pumping this project, if Gemcorp is only expect to make US$6-8 mil over the 3 year agreement, this works out to be only US$20-27mil in profit in the 2.3 years that remains in the agreement, This assumes all of the DFS forecast (recovery, output, flake size) are all achieved. Then shareholders will have to enjoy the US$20mil in mining costs just to access the additional graphite. There goes the free cash margins in year 4. I guess on the positive side, if the mine fails they won't be needing to mine or find the funds to remove this overburden.