Mining rate and mill size

While we’re watching the paint dry, I refer erudite readers to Taylor’s Rule Http://minewiki.engineering.queensu.ca/mediawiki/index.php/Estimation_of_the_potential_production_rate.

This is empirical and I use more sophisticated approached in the course of my work, but this is not a bad first approximation.

You will note that, if you believe the 30Mt “mining inventory” *cough*, then this implies a mine life of something like 15 years to justify capital associated with a plant of commensurate size. The corollary of this is that, at 3Mtpa, a plant that is apparently capable of recovering the periodic table is wayyyy to large for this mineral occurrence. Taylor’s Rule indicates that capital associated with something 2/3 the size would be more appropriate.

Consequently, the Competent Person has apparently insisted that the IRR (0.2%) be published with the *cough* Reserve.

Here endeth the lesson. Next lesson: metal equivalents and why ya don’t predicate margins on byproducts.