@CounterVinI'm not sure it's true that WMG and Mt Keith ores are...

@CounterVin

I'm not sure it's true that WMG and Mt Keith ores are equivalent.

- Mt Keith's recovered grade of 0.36% Ni, the grade presented to the smelter, is greater than the average grade of WMG drill holes to date. MTD026 may increase the average but probably won't change the fact.
- Mt Keith 'sells' to a smelter owned by the same company and so doesn't have to pay a 'profit' to the smelter / refinery
- Mt Keith trucks its concentrate around the corner to the smelter

Let's say WMG ore is much cleaner than that of Mt Keith, much less nickel in silicates and pyrite and pyrrhotite...

- You've still got to stick it through a concentrator and lose some
- It's con grade would probably be high and if clean the con would be desirable
- If KNS doesn't buy it you've got to pay road, rail and shipping costs
- What might the smelter average profit be? 10% probably

You could start off at 0.3% Ni in drill holes and end up after recovery, transport and smelter profit at 0.24% Ni or two-thirds of the Mt Keith equivalent.

In a higher nickel price environment 0.24% Ni looks OK but it still has to pay off a chunk of capital before one worries about op costs. Look at the OZL Nebo-Babel FID release for a reasonable idea of costs.