yeah it's not great. I thought it would average out at 1.5% or below. That's the problem with only looking at the headline numbers. Need to look at the appendices and the whole intersection which had plenty of results around 0.9% nickel.
1.3% is not viable at current nickel prices. Doesn't matter how much tonnage they have. All nickel laterite assets are large anyway.
Hence that only 10% has been drilled doesn't mean much as with nickel laterite assets most of the area will be the same.
Reminds me of a gold stock that had areas of 10g/t, very high gold, but also heaps of low grade areas and the average was low. They could never raise the capex and went bust. Too hard to mine selectively so it's the average which counts in the end.
Not sure why people think this is worth billions. Then again, it's only people on HC that think so and nowhere else.
AVQ Price at posting:
35.5¢ Sentiment: Sell Disclosure: Not Held
