I would be very surprised to see CZI defer the scoping study.
> For a start, the resource estimate and the met studies are normally part of the scoping study. Typically a scoping study would start as soon as the drilling program is completed and the scoping study manager would oversee the conduct of the resource estimate with the company geo to ensure it aligns with the scope of the scoping assessment (eg size of mining operation, etc) and it is completed as quickly as possible.
> The current met studies would be merely a re-run of the flotation met program, but using a higher head grade feed sample that would reflect CZI's high grading pathway. So this is not a detailed met program with a lot of finessing. Flotation is not rocket science and the more detailed optimisation studies would be done at Feasibility stage. In effect, if the met studies have already started, then so has the scoping study.
> I would imagine that if CZI are targeting a 3 to 5mtpa sized process plant, therefore the amount of tonnage in the near surface part of the roll over discovery will be helpful, but not critical. It would only be worth holding off the scoping study for more drilling if the roll-over discovery had scope for a material change in near surface tonnage, but this does not appear to be the case?
> CZI's operating mode is clearly to fast track.
> The open question is whether CZI intend to do a prefeas before heading to feasibility. If not, the Scoping Study will need to be quite comprehensive as it will need to set up the Feasibility Study with only one production rate to appraise. IMO this is perhaps the largest influence on whether drill programs and any met work is extended or not as maybe these are pushed further than normal now to ensure the board has confidence in the outcome of the scoping study and taking the selected production rate straight to feasibility.
However I am still in the CZI "going as fast as possible" camp, therefore no delays in going to scoping study.
Cheers
Gosouth
CZI Price at posting:
13.5¢ Sentiment: Hold Disclosure: Held
