For those wanting to look at the economics of a small...

For those wanting to look at the economics of a small underground copper-gold mine the HGO owned Kanmantoo Copper Project is worth a look. The scenario where Carnaby toll treat their Mount Hope granted mining lease ore has some similarities. The latest HGO presentation indicates an AISC of A$8,051/t of copper from an ore body with only 7 million tonnes at 1.08% Cu and 0.16g/t Au. The ore is in narrow medium to high grade shoots with limited strike extent. Over the 4 year mine life HGO expected a free cash flow after tax of $205 million. The underground mining project is now fully funded with $39 million recently raised. The mine has a complete copper-gold processing facility on site with granted mining permits.

If Carnaby toll treat then capex and other figures might be in the right order of magnitude although there will be transport costs and possibly a mine camp to consider that HGO don't need.

I am not in any way suggesting Carnaby's maiden JORC will be this low but it will be just a statement of where the drilling is up to when the line is drawn. If we waited longer for the JORC current drilling results indicate that it would be higher if future drilling gives similar results.

RRR's maiden JORC of 1.6 million tonnes at 1.1% copper is supporting a market cap of $40-50 million. Exploration potential is no better than Carnaby in my opinion. They are claiming to be Queensland's next emerging copper producer with near term production potential.

DYOR. Not investment advice.