Agree with much of what you're saying @Freehold but as you have...

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AGreatYear

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03/10/17

19:32

Post #: 27632811
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Originally posted by Freehold ↑

Interestingly KDR's MT Holland Lithium project (Earl Grey) is approx 500km from Port. KDR's deposit is mostly in the 80m - 200m deep zone due to extensive weathering (true width only 70m) and around the same grade however has significant contaminates that need to be removed ie, Fe203 .

AVZ is high grade at surface in places and thicker up 250m true width in places avg unknown as yet and contaminants appears to be very low but will need metallurgicals to confirm. ...but to be fair KDR's earl Grey has flatter orientated mineralisation envelop at depth but AVZ has a much longer strike size a lot of which I suspect is at surface.

KDR has a Low strip ratio of 2.3, reducing to 1.9 after pre-strip (or removal of the top 70-80m overburden);

View attachment 756336

I expect AVZ will be able to undercut them dramatically on production costs being at surface and cheaper labour and poss less contaminants etc it seems however KDR will have cheaper "shipping" costs to China OZ to china is a shorter distance than DRC to China... Assuming they Don't choose to ship to Europe in which case about the same. AVZ will enjoy economies of scale that KDR may not be able to achieve. I expect both to ultimately build an upstream plant to produce 100% Lithium KDR prob some distance away from mine at Bunbury or PErth or Kal ... and so cost of Bulk transfer will be reduced somewhat as transporting 100% lithium ...not 6% concentrate by sea. Don't know where the Upstream plant will be for AVZ ... Prob at or near the Mine site which will afford them anoth Cost advantage over say KDR who will ship bulk to port then process 100% Lithium there.

All is IMHO only

KDR scoping summary below:-

View attachment 756354

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Agree with much of what you're saying @Freehold but as you have avoided the topic AVZ's biggest cost will be transport.

The SS today produced by KDR is a good indication costs. Until AVZ proves these costs all of what you are saying is hypothetical.

Also as you alluded to AVZ needs more metallurgical results to confirm many things. Interesting times no doubt

AVZ Price at posting: 11.5¢ Sentiment: Hold Disclosure: Not Held
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0 Great analysis

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