New to RMX, sorry in advance if I re-hash on something that has already been discussed.
Going off the announcement dated 14th March, RMX had already identified Grimshaw Drilling as their contractor. This tells me Grimshaw was well aware of upcoming drilling contracts with RMX, meaning they had plenty of time to prepare a rig set up and personnel for when the green light was given.
Funnily enough, the green light for drill permits were given in the same announcement along with the statement "preparations for drilling are already well advanced." (2 weeks ago)
Further more "ground conditions are good." Something you would usually keep quiet on a rig as it gives expectations by paying clients of quick easy holes, and it makes it a little difficult to cover up delays from (arrghhh we hit some slow hard ground....) break downs etc that do occur on rigs regularly. It only takes a hydraulic line to blow out (a regular occurance on rigs) or water pump to break down (eg on DC rig) they're basic problems, but will halt production.
IMO, such a statement shows further confidence, and if it is good ground, good crew, only day shift, could produce average 35m-50m per shift. I am being conservative of good ground as I don't know the ground they're drilling.
I'd give each week a shift of DT (down time) also I am unaware of the efficiency of the drilling mobs in the US...which brings me to my next point.
From my limited understanding of the geography of the state of Utah, a drive from Salt Lake City to Red Valley is approximately 6 hours. The announcement on the 27th stated "it is anticipated drilling will commence in the next 7 to 10 days."
If this distance and time of approximately 6 hours is correct, and the rig has been mobilised, then it would IMO certainly be drill to ground within 48hours at absolute tops. To myself that would be giving a copious amount of time. Drill rigs are generally (once again I am unaware of the operations in the US) charged on a standby day and production rate, and big $$$. Standby rates are for DT, mobilisation. If a rig is to arrive on site 8 hours into a 12 hour shift, it is more than expected by the client to have that rig well set up to commence drilling on the next shift, at the very least be over the hole with rod truck in place, water set up etc. They're not going to pay for a rig to sit on the pad for 4 hours when it could be being set up. Time is money to the client, reputation to the contractor.
I read mention of samples being taken every 10ft, although usual practice being 3ft for Lithium brine. Common practice by RC drilling (every 1m on much shallower holes) although from my limited understanding of drilling lithium brine, Grimshaw are using DC (Diamond Core) rigs? If so, samples at every 10ft (3m) will certainly slow up the process.
Conclusion - drilling has commenced, and as someone previously mentioned, they're being smart by giving a larger timeline due to imminent set backs that occur on rigs at any minute. I am anticipating result much sooner than stated.
IMO - please feel free to correct any of my misunderstanding (eg - type of rig being used) so we all benefit.
Cheers
KS
RMX Price at posting:
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