These are the nos from Prophecy.....note the grade and low recovery rate of extraction
TMT with 1% and 90%+ extraction then our PFS should result in a NPV in excess of $1bill
see their full report here...some extracts are below to illustrate my point.
Gibellini vanadium project, designed to be an open pit, heap leach operation in Nevada’s Battle Mountain region, is about 25 miles south of the town of Eureka. The PEA reported an after tax cumulative cash flow of $601.5 million, an internal rate of return of 50.8%, a net present value of $338.3 million at a 7% discount rate and a 1.72 years payback on investment from start-up assuming an average vanadium pentoxide price (V2O5) of $12.73 per pound. As of May 29, 2018, the price of vanadium pentoxide is $14.20 per pound according to www.asianmetal.com. The PEA was prepared by Amec Foster Wheeler E&C Services Inc. (“AMEC”), part of the Wood Group of companies. All dollar values are expressed in US dollars unless otherwise noted. The PEA Highlights:
Column 1
Column 2
Column 3
Column 4
Column 5
0
V2O5 price change
V2O5 price $/lb
After-tax IRR
After-tax NPV $M @ 7%
After-tax cashflow $M
1
30%
16.55
69%
568.0
996.0
2
20%
15.28
63%
491.3
864.4
3
10%
14.00
57%
415.2
733.2
4
V2O5 grade change
V2O5 grade
After-tax IRR
After-tax NPV $M @ 7%
After-tax cashflow $M
5
30%
0.34%
68%
554.4
972.8
6
20%
0.31%
63%
482.4
849.0
7
10%
0.28%
57%
410.7
725.4
8
Base grade
0.26%
51%
338.3
600.4
9
Gibellini Deposit Mineral Resource at higher cut-off grades
Column 1
Column 2
Column 3
Column 4
Column 5
Column 6
Column 7
0
Cut-off grade V2O5
Measured and Indicated
Inferred
1
Tons (Mt)
Grade V2O5 (%)
Contained V2O5 (Mlb)
Tons (Mt)
Grade V2O5 (%)
Contained V2O5 (Mlb)
2
@0.25% cut-off
13.8
0.35
96.4
0.5
0.271
2.5
3
@0.35% cut-off
5.5
0.43
48.0
–
–
–
TMT Price at posting:
44.5¢ Sentiment: Buy Disclosure: Held
