I haven't looked at GXY for quite a while.  The most striking...

I haven't looked at GXY for quite a while.  The most striking thing too me in this announcement and having a look at a few past announcements is the grade of resource has been steadily increasing, from where it was initially back in 2016.  It is now essentially grading some 1.28% based on the current announcement which means a reduction in unit costs IMO. 

You only mine a measured and indicated resource not inferred so the way to look at the update IMO is to take 100% of your measured resource (2.2 mt) and take say 60%, just a guess but the norm is at least 50% in a BFS philopsphy) of your indicated resource as the mineable resource after 'studies' (60% of 9.9 mt), making the mineable resource 8.14 mt (using the measured and indicated resource of this announcement).  Obviously with more drilling you might move more of the Indicated Resource into the measured category and some of the Inferred Resource into the Indicated Category etc etc.  (Note: you don't mine Inferred Resources btw in BFS etc or include them in life of mine until they move into the Measured and Indicated category (see below pick) as a general rule).




Using 8.14 mt of ore  grading 1.28%, and using a 80% recovery, meaning you need 5.9 tonnes of ore to produce 1 tonne of 6% grade concentrate, this translates to 1.1 million tonnes of 6% concentrate been produced from that measured resource and assumed Indicated resource mineable  (over the life of the project). Obviously with more drilling the number becomes higher.   From the Nov Ann, saying throughput increased at Mt Cattlin to 1.6mtpa - Post #: 36526661 meaning yearly 6% grade spodumene of about 220,000 tonnes of spodumene concentrate (i.e. 1600000mt ore feed divided by 5.9 tonnes * 80% recovery), which translates to a mine life of 5 years from here (minimum because with more drilling suspect will get more ore into the measured and indicated category.  If increase throughput to 2 mtpa then mine life on above translates to 4 years with annual 6% spodumene been around 270,000 tonnes (minimum because with more drilling will increase too and if all the 16.7 mt becomes recoverable well mine life becomes 8 years).

The key here is to continually increase the resource in the measured and indicated category so that mine life becomes greater than 8 to 10 years IMO (on the measured/indicated resource).  Once do that SP here will takeoff big time IMO frome where it is in the now.  Given GXY has been able to profit from the high spodumene prices in the past and in effect has no debt IMO should have plenty of cash to explore and upgrade the resource etc etc as it is doing now.

I am probably wrong but in my boredom and with VB in hand just had a look over here for curiosity sake only and suspect I am wrong as well.

All IMO IMO IMO IMO IO