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Underground is not going to work here, especially not room and...

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    Underground is not going to work here, especially not room and pillar. Firstly the base of oxidation is not far above the intersections meaning that the mineralisation is also partly within weathered material. Geotechnically its a no-no. You also need very high grades to offset the relatively low mining rates and high mining cost, because you're essentially mining the orebody with a Jumbo. It's slow as f$$k.

    And because room and pillar mining is slow and inefficient, it would not produce the high tonnages required to make the project economic. An operation here needs a huge mill and massive tonnes to make sense. It's called room and pillar because you need to leave pillars behind. And in a flattish orebody, those pillars are going to be ore. So leaving 30% of the ore behind in pillars just further kills the economics.

    An open pit would indeed be a high strip ratio, but it's not just about the strip ratio, it's about the operational cash flow and risk. With flat orebodies the project would be cash flow negative until first ore is reached, and with the amount of overburden this could stretch into years. Financiers take a dim view of a project that has capex of probably over a billion to develop that isn't even going to be cashflow positive for years. It's really not a palatable combination.


    Last edited by jman0076: 09/03/24
 
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