This post is just to qualify a few points:
Firstly, our iron ore at Riley mine has been graded at about 57fe most of Anglo Australian iron ore producers grade there IO at this level...The difference between 62fe and 57fe is about $15 tonne DSO.....Our Riley IO has already factored in the contract value.....at $90 per tonne DSO for a reserve of 1.6million tonnes is 30million, over 2 years.....It is most likely we will have more tonnages as this was the figure used on our BFS....Generally, to estimate to the lower scale.
Normal mining practice....Our resource estimates was around 2.1 million tonnes, more often than not you will always find more once we are to mining, as its near impossible to find the total amount just based on drilling....At today's price we are looking at about $85milion from the 1.6million tonnes.....There is no discount as the contract is for 57fe it can only go up in value if our grades come out higher which is more likely than not say 58fe...Also, we have a bonus of a low cost low strip ratio.
Livingstone - so far has yielded 600,000 tonnes of IO with minimal drilling thus far only 10% (keep in mind), this will be either extended during the mining of Riley or they will just mine it in conjunction with Riley, this lease is most likely to also yield a lot more than the first estimates.
As for the low grade Tin, my understanding of this is we will also pick this up from near surface along with some Tungsten as we work towards developing our underground operations where we have high grade Tin / Tungsten...Any Tin or Tungsten at surface or close to surface will be mined...that's not to say we are open pit mining, we are in fact setting up for underground operations. But we will certainly not be leaving what's readily available.
Normal mining operations work on a 40% to 60% cost ratio. In this case we are close to the 40% based on the amount of resource close to or at surface. Our Tin costs have also factored into it the total capex of our operations which comes out at around $12,000AUD. This will reduce once we are into the underground operations to around $8,000 to $9,000AUD a tonne profit...People can do the multiples on this...However, it's worth billions. And this is still based on only having 10% of the total areas drilled (keep in mind). Remember if 10% was enough to warrant the development of a 59 million capex spent on a mine, then God only knows how much more we will find under mining conditions. To set the record straight also, I have spent 40 years in mining. This operation in my opinion could be huge...And then you have all the credits we may find: Iridium, Osmium, Nickle, Gold, etc, etc....
Kulin - could be another, Thor or NGG the recent trenching is indicative of this. The area drilled was never prospected before according to A.R the nearest drill was over 10K's away....The recent drilling, I believe is just a reconnaissance measure to see if they can keep the same structure, whilst they awaited more EM's to be carried out at NGG....Anything from Kulin will be a bonus.
NGG - so far has been very positive to achieve, a 7% Zinc find is more indicative of more to be found...in Laymen terms if we now got better targets to drill and we can find an average of 4% Zinc overall along with other minerals: Gold, Silver, Copper, etc, etc...then this alone could be a Billion dollar Resource.
Thor - Chalice have found a Julimar type find and the direction have led them down to Thor....That's not to say they will also find the same structure as previously found, but once again all the indications are there, otherwise you would not be committing to a farm in....It may well be that the host material is in Thor (wouldn't that be great), something we will soon find out....But to have a company like Chalice jump straight into a farm in arrangement with us speaks volumes to what they believe is hidden under Thor....Drills usually indicates the direction to follow.
A.R made a comment be it off the cuff that he believed our company could be a $4 to $5 company, I believe he could be correct......Also believe our current SP is 10x under valued at present by comparison to quite a few others, our SP realistically should be closer to 60 cents, but the market is a funny beast.....And this should soon change. The BOT trading in the past 6 weeks have accumulated over 18 million shares. What will be interesting is who will buy these off the BOT traders.....Generally, it will be an Insto, our top 20 will soon tell us when these are on sold off market.
Once this happens expect to see a surge in the SP and plenty of Insto participation.
I have had a few discussions with A.R in the past and I can assure people he has never been more confident and energetic, remember this for 8 years he has been hammered....You can now see in his face and his voice he's back with a vengeance and good for him. One thing all Venturians can be thankful for we have Mining people running our company and not Lawyers and Accountants....This is the difference between lifestyle companies and genuine mining companies.
So, the main point here for everyone to remember we are not factoring in any discount the price for Iron-Ore is set....We have a much lower cost operation than FMG....We have only estimated the minimum of 1.6 million tonnes at Riley and 600,000 tonnes at Livingstone.....My bet, plenty more there to be found once we commence mining...GLTA hold your ground do not sell to the BOT's, forget about the pissy few bucks to be made on the trades at these levels....The flood gates will soon open.....Just my opinion and this is not financial advise for anyone. Do your own D.D
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