Please note: the following is pure speculation... Lol but have some fun dissecting my thoughts.
Apo!
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As I was doing some research into China's dealings with strategic resources(in this case rare earth minerals) I came across this article.
it makes for great reading as to China's foresight and approaches. (and IMHO the stupidity of Wayne Swan and his sycophantic buddies)
This is not directly related to silica and the VRX deposits, however it is aligned as it concerns the rapidly growing high tech industry and the strategic importance of securing feedstocks.
We are all aware of the importance of high quality silica sources. And whilst VRX and management are firmly focussed on cash flow and forward sales to the HQ glassmaking and foundry industries, i feel there is a bigger element at play here.
Securing feedstock for the Chinese high tech industry is no doubt on the CCP agenda.
I'm well aware that our grades don't meet the ultrahigh purity demands for crucible or silicon wafer production. (Only 1 mine in the US does)
HOWEVER
Refining and benification techniques are improving all the time. Given the sovereign risk to China and their demonstrated foresight, there are considerable resources and quite literally thousands of engineers and chemists that could be tasked with upgrading our HQS to UHQS.
It isn't actually a huge scientific endeavor. Even if it was wildly inefficient (0.01%) it would easily be met by CSG's raw HQS inflows.
the Warrawanda tenement (which still remains listed as a nickel play in the latest announcements) has returned exceptionally high grades directly from the quartz outcrops. Of which there are many in that tenement.
This tenement is not on anyone's radar at the moment. (Except perhaps management and BOD). But don't think the public announcement of those grades has gone unnoticed by CSG.
For those that think muchea is the jewel in the crown, and it most certainly is for all investment intents and purposes...
Put some time into understanding and researching the strategic importance of UHQS to the tech industry, it's exactly the same as the rare earth scenario.
besides, it will give you something else to do while we await the mining licences.
But mark my words... the bigger item at play here, beyond the companies mining investment and production story, will be the warrawanda resource in 5 years.
so thoughts, feedback, opinions.
as I have stated I'm a long term holder since 2.5c. And a believer in the companies potential. I hold a pitiful small amount of stock. I'm a hack investor. Lol. But I love research.
DO YOUR OWN RESEARCH!
Apo!
VRX Price at posting:
14.0¢ Sentiment: Buy Disclosure: Held
