Chris, look at the wording ("would mean revenue") and ("resource already identified") and ("is already sufficient for"), then put that into the context where they were applying for a full production mining licence and seeking an offtake partner in China at the time.
No, I stick with my original premise. They were Explorers, not yet fully licenced to mine, but had identified resources, had obtained permissions and permits in preparation to mine, and had opened discussions with Chinese refineries.
"As previously advised, in parallel with the development work to be undertaken under the now expected MDL, the Company is actively working towards Mining Lease (ML) applications to allow for mining of all the identified bauxite ore resources at Camp Creek."
( https://wcsecure.weblink.com.au/pdf/QBL/01895428.pdf )
and this...
"Following the recent granting of the Mineral Development Licence (MDL) by the Queensland Department of Natural Resources and Mines, the work programme under the MDL has been progressing to plan, and bulk sampling has been undertaken in accordance with the work plan. The granting of the MDL has allowed the company to begin sending bulk samples of bauxite to potential customer refineries in order to secure off take customers for the bauxite ahead of anticipated production next year, and for the purpose of proving the economic and operational feasibility of the entire South Johnstone project with the aim of generating positive net cash flows in the near term under intended Mining Lease (ML) applications."
( https://wcsecure.weblink.com.au/pdf/QBL/01931948.pdf )
and this may also help clarify...
"Dr Robert Coenraads PhD, as part of its ongoing marketing strategy, and as part of the operational plan under the existing granted Mineral Development Licence on South Johnstone, are currently visiting several Chinese bauxite refineries and aluminium smelters whose executives have expressed interest in partnering in the development of our South Johnstone Bauxite Project. The QBL team is also meeting with Hong Kong based metals marketing platforms who have offered to assist in the commodity trading with QBL."
( https://wcsecure.weblink.com.au/pdf/QBL/01974432.pdf )
When seeking a full licence, it was obvious they would have considered, based on discussion outcomes and agreements to consider if they were to become a joint producer/explorer, as obviously shown by their decision to apply for the 3rd licence and announce their intention to mine. They lost the window of opportunity with the Australia - China trade dispute in 2018 when discussions just shut down.
Apples to Apples (explorers), Oranges to Oranges (producers) and Tangerines to Tangerines (explorers/producers), my friend. Some Mining Producers also have an Exploration Division.
Do you think possibly that the trade dispute between China and Australia didn't affect discussions and outcomes?
Food for thought. No pun intended...
CGB Price at posting:
2.1¢ Sentiment: None Disclosure: Held
