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Ann: Drill Results at Succoth Demonstrate World Class Potential, page-48

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gosouth

3,050 Posts.

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26/11/14

23:37

Post #: 14360554
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Originally posted by ozblue ↑

Brett,
That $100m+ that BHP turned down begs the question, of why the offerer in that case isn't snapping up CZI shares. Currently they could buy the lot (less the 2% smelter fee and the $10m payment on first years production) for probably $20-$40m.
Different times and whoever they were have probably moved on.

Gosouth, you have to remember that it is J.Hronsky with another author that initially defined what 'world class' meant in terms of mineral deposits, back when he worked for BHP. Considering the entire area as a 'camp' could be included, world class for base metals was something like 5mt+ CuEq in resource. The Aitik mine of Boliden's is world class even though only .25% Cu 1.5g/t Ag and .09g/t Au, but up to 1.9b tonne still remaining.

The document/presentation outlining 'world class' is called......"WHAT DO WE MEAN BY A WORLD-CLASS DEPOSIT? AND WHY ARE THEY SPECIAL ?"

It is from BHP and produced by Schodde and Hronsky.

Here's p6.
"There are wide range of definitions for world class World-class means different things to different people … i.e. for:
• The general public …Something of outstanding quality
• Investors ….. They make lots of money for a long time!
• Geologists … A deposit with a very big mineral endowment
• Promoters … Something that might be big"
p47, they use Ertsberg-Grasberg Camp as an example, especially of something that grows into world class.

Later, my take away was at least .8%CuEq of base metals (which they formularise) plus over 5mt CuEq.
Nebo-Babel and Succoth together as in the whole camp qualifies. We just don't have a JORC resource for Succoth yet, but Nebo-Babel qualifies by itself.

They also seem to be referring to stable western countries for their definitions.

If we, or whoever else put a $1b worth of renewable energy in place(wind and solar) with a 30mt/a plant out there, you are looking at a very profitable enterprise over at least 20 years, able to mine the much lower grade Ni and Cu.
At the same time further exploration will turn up lots of low grade but profitable mineralisation, like Yappsu, Esaglia etc plus possibly high grade.
That is not Cassini's plan at present. They are looking to start off with smaller high grade mining/processing then build.

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Ozblue
A quick google is reasonably illuminating. The paper by Schodde (who I have met on numerous occasions) and Hronsky is easy to find, but there were also earlier studies than theirs, so I don't think Schodde and Hronsky would openly claim to have been the first to define world class (maybe I am wrong).
A key element is that being world class is not just about size, economics is a big factor (I see a mention of NPV greater than $250M).
However, this is a small detail and lets move on.
I have always been a conservative type and there is no doubt CZI is fishing in a very fertile pond. Succoth in particular now seems to have added an X factor.
Cheers
Gosouth

CZI Price at posting: 18.0¢ Sentiment: Hold Disclosure: Held
1 Upvote

0 Great analysis

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