With Zn shortages making news 4 companies are mentioned in one...

With Zn shortages making news 4 companies are mentioned in one article.

Not surprising RTR is one.

RUMBLE (ASX:RTR): Trading at 29.5c, down from 42c three months ago. But Friday’s close did represent a 4.5c or 18% pop on the zinc supply squeeze thematic.

It has been mentioned here many times in the past on the basis that its Earaheedy project north of Wiluna in WA is an emerging world class base metals system. The identification of higher grade “feeder’’ zones to the laterally extensive mineralisation has enhanced its world-class credentials.

Rumble’s stock exchange compliant “exploration target’’ of 100-120 million tonnes grading 3.5-4.5% combined zinc-lead is very much a “first stage’’ target.

And to juice things up, Rumble is free-carried in the gold-copper hunt in WA’s Paterson province in a joint venture with AIC Mines (A1M). A drilling program has just started at the Lamil project, about 30km west of Newcrest’s (NCM) Telfer gold-copper mine.

RTR won't catch this price rise in terms of production.

I suspect many will know aspects of what is below but for weekend reading some geopoetry from a non resource geo.

Yes there is a large exploration target MRE which is probably still growing and backed by 5-600 holes - mainly RC but also including some 30 diamond holes [and a few sonic]. {>100Mt at +2% combined Zn Pb with some Ag Cu which has changed over time AND IS STILL ONLY AN INDICATION FOR ALMOST "ARM WAVING REASONS"}

RTR will probably be able to give a MRE with mostly inferred resources based on 100m spaced drilling sometime in the next year or sooner. The continuity of mineralisation may allow for a higher status especially where there is infill and/or diamond drilling. However, feeder zones will IMO need to have more drilling to confirm continuity in the vertical sense.

Normal process seems to be find a deposit, drill enough to produce a maiden resource estimate (MRE), then decide to go the study route.

Scoping study (SS tick then), Pre feasibility study (tick?) Definitive DFS (tick?) Bankable BFS and/or decision to go to construction.

Expensive and time consuming process but de risks the project from +-35% (SS) to +- 10% which makes the investment of large sums more likely.

How large in $terms? in time?

$s? Mining could begin with open pit which is cheaper than UG though environmentally on the nose a bit with zero carbon considerations. Plant? Transport (RTR already have a pending Miscellaneous license for ?access - Feb 22 application). Environmental considerations for shipment of concentrate need to be carefully handled for the Pb in particular. [There have been some real fails in WA for Pb and I believe Ni). I wouldn't estimate capex other than it won't be cheap and getting more expensive if inflation continues. Offhand I can't think of a similar Zn/Pb project that could be used for capex comparison in recent years. Pering? R1.4B @ 0.091 is $A130M for a total Proven and probable resource of:

At the current zinc price of US$0.6 a pound, the proven and probable mining reserve is 42.6 million tonnes at a grade of 1.21% zinc and 0.31% lead.

Pering vs Earaheedy? former mine with existing pits and aging infrastructure vs completely new. Grades for peripheral Earaheedy are similar with higher grade core down the track as mining, if ever, goes deeper or as starter pits in some areas????


Are there going to be any smelters to handle the concentrates? Is there an opportunity to process in Australia with hydrogen?

Timing - initial MRE to construction depends on many factors.
Fine grained ore: The McArthur Zn Pb Ag mine was discovered in the 1950s , also known as HYC (Here's Your Chance - to name a mine), but took 40 years to come into production in the Northern Territory.

Simple logistics for the time frame mean the full studies are difficult to conclude in under a couple of years even with unlimited funds which aren't often available. Then there are long lead items and the logistics of construction that take another 1- 2 years. There can be some overlap meaning 2-3 years from an MRE would be an optimistic time frame for a relatively simple project. Is Earaheedy going to be simple.

Just food for thought and quite debatable.