Im not an expert but can share couple of points. Grade is really low and resource is deep in ground. Im not sure how its solved - open pit or underground. If its underground then going to be expensive to mine. I've worked in IGOs Cosmos mine and it was underground mine. Bad thing about that mine was fragile and broken ground + lot of gasses trapped. If ground is broken, then its really challenging placing support on walls.
This support is put by jumbo, where even one operator earns 250 000$ a year. In Cosmos, there were 4 jumbos.
And each truck has certain capacity for ore transport. They are moving very slow and if you come deep from the ground, you wish as high grade as possible, because EVERY inch of a move costs money. Now this mine is under C&M. As is BHPs nickel west.
I remember doing some research about WMG and if I do remember correctly, then yes, theres 5.something million tonnes of nickel in ground, but recovery rate was awful. Because of that actual reserve was much much lower than 5+Mt. The lower the grade, the more challenging to achieve good recovery rate. And I think AISC per tonne is very high.
But I can be wrong with all of this. Not an expert
ARL Price at posting:
39.5¢ Sentiment: Hold Disclosure: Held
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