- Small project ..If you call 547Mt small, of that 490Mt is in the indicated category. This equates to over 150Mt of product...
- Low grade, with impurities .. Easily upgradable to quote the latest report "These latest results further support the Company's belief that the Yampi Member can produce one of Australia's best magnetite concentrates in terms of iron grade, low level of impurities and grain size"
- Uncertainty on indigenous issues .. Native title was signed in December, the rest is just a formality.
- Uncertainty on environmental issues .. The couple of major environmental awards would indicate that they are doing the right thing, to date nothing rare or endangered found.
- Uncertainty on how big the project is. If the overlying sandstone is not economical to be processed then the project will have huge strip ratios and opex ..Not sure where you got that from, all testing so far has shown Fe results in the high 60's to 70's
- Very small footprint ? where do you place the waste? ..The island is bigger than it looks, the ore body is only a small part of it.
- Very small footprint ? where do you place the tailings, even if dewatered? .. As above
- Uncertainty on the process being able to reliably extract the impurities .. As above The CSIRO test results show good quality product.
- Uncertainty on the projects position on the cost curve and competitiveness .. The PFS will reveal all, it will be out in the next 28 days, stay tuned.
- Note some bearish iron ore price forecasts for next few years as substantial supply kicks in .. Some bullish, some bearish. Iron ore is cyclical.
That said, all mining explorers are risky. Sensible research will help you find the wheat among the chaff.
Cheers ..
PLV Price at posting:
76.5¢ Sentiment: Buy Disclosure: Held
