I think that the announcement was extremely significant in that it was highlighted that the previous extensive (and expensive) testwork was sample specific. In other words each test was done on similar rock types and grade (No mixture).
This new test work was applied to a concentrate derived from the wide spectrum of mineralisation found at Buena Vista. These ores ranged from 10% to 60% but when mixed together achieved outstanding results. The previous testwork had been done on specific rock types with similar initial grades.
The reason for doing this additional work, in my opinion would be to satisfy a potential offtake client or a financier that Magnum can deliver.
This work takes out a lot of the risk of the Company being able to produce regular quantities of on-spec material to meet any off-take supply commitments. Before it could have been assumed that this result wold be achieved, but could not prove it.
What I am trying to say, is not only are these good results, they also de-risk operational issues which should assist in finding that off-take agreement.
Getting material to Mitsubishi's clients can only be a good step towards that off-take for BV.
The focus back to dry processing is also a welcome decision that seemed to have been lost during the recent changes in management.
This not only cuts Capex and Opex, but it also reduces water requirements significantly in a very dry part of the world
.Dry processing optimises the unique metallurgical qualities of BV ore
MGU Price at posting:
1.5¢ Sentiment: Buy Disclosure: Held
