Originally posted by AussieBryan
@Jayse very good posts and keeping on topic. Normally each leach sample takes 60+ days to review results. Now Interim results are reported after 45 and 28days. (Page 8 of today's announcement)
- Alternatively, if lump ROM material was chosen in coming months to be the most economic option to beused in the PFS, then there will be no magnetic separation circuit required at all. (COST & TIME SAVING)
- The potential of using a coarse 2mm concentrate for a heap or vat leach operation is now under revue astest results demonstrate it would reduce the amount of material leached by ~50% and potentially shortenleach times. (COST & TIME SAVING)
- A 2mm concentrate beneficiation plant would be a simpler design to the facility used in the recentlyreleased Vanadium Scoping Study that generated a 106 micron (~1/10th of a mm) concentrate with thepotential flow on of capital and operating cost savings. (COST & TIME SAVING)
- Board is committed to examining potentially lower capital and operating cost project development strategies that may also deliver a shorter development timeline.
The part that really interested me is
" Successful conclusion of these tests and studies will lead to the planned publication of a PFS Study in2019. " Why you may ask, well the reason is because in the vanadium scoping study (01-11-2018) they stated that the PFS would start January 2019 and estimated completion date would be January 2020. Reading the announcement today, my understanding is the PFS will be
published and released in 2019.
@Gwilkos mentioned HPA which as stated has never been addressed before, so I looked it up.
HIGH PURITY ALUMINA: A BRIGHT FUTURE
Another interesting article on crushing costs can be found here, if anyone wishes to research.
CRUSHING ENERGY COSTS IN THE MINING SECTOR
I thought today's announcement was a very good one and people may ask why the market didn't appreciate it. Well look at the ASX down 36.4 points or 0.63%. KRC up 2 pips or 4.65%, so not too bad for today. Lets see what happens now over this week and coming weeks, once people realise that the CAPEX & OPEX is going to be dramatically lower than the SS stated and the PFS being fast tracked. I posted about another company using sulfuric acid:
(INR) "Includes a quarry mining 2.6 Mt/a of ore, and being processed by vat leaching,evaporation and crystallization to produce boric acid and lithium carbonate as moreparticularly described in this report. The overall operation is enabled by an on-site3,500 t/d sulfuric acid plant that will produce acid for leaching, steam for the evaporationand crystallization circuit, and generate approximately 47 MW of power."
(KRC) "This new project concept may involve on-site sulphuric acid vat or heap leaching and the processing.
On-site sulphuric acid plant to produce acid and steam for process heating and power generation" Very similar!
My comments/posts are based completely on my own experience thoughts and interpretation along with my current financial position at the time.Conduct your own due diligence, consult a licensed financial advisor or broker before making any and all investment decisions. As usual all constructive criticism welcomed.Good luck to all that hold.
Management really need to get a wiggle on with these developments, and an updated timeline would be appreciated.
Along with all your valid points above, the below is also of significance:
Our SS provided no information regarding potentially staging production, the US$1.4m price-tag was for the entire 10mpta(assumption) multi-resource producing plant. As stated above, a sulphuric leaching project will enable
scalability whilst simultaneously improving outputs.
This should go a long way in bringing capex down. And we don't need to kick off with a 25ktpa v2o5 output operation, as securing financing is enough of a challenge for a project even half the size.
It's interesting to observe some early signs of life in the lithium sector over the past weeks, yet vanadium stock performance has been extremely lacklustre. Ignoring grades for the moment, it's inarguable that KRC boasts an almost textbook orebody and subsequent pit design, deep sea port access only 100km away, and the ability to utilise existing Wyndham infrastructure are things unique to only King River.
Absurdly low strip-ratio and a deposit that is at surface/homogenous in nature that can print off-the-bat a 30 LOM without the need for any further resource extension. Not to mention the diversification provided through offering multiple strategic metals. This is where KRC has a significant edge over other V plays on the ASX.
A high-grade V play on the ASX are reporting strip ratios up to 3,000% greater than that of KRC, that's a lot of earth to move and will provide a significant hinderance to profitability, especially when the spot price of V mean reverts.
