RIO walked away from Vulcan basically because the Iron Ore price started to tank in late 2013.
The Iron Ore price is in a far better place these days. This is great news for TAS, FMG and for all of us. In addition, Copper, Gold, Silver and REE prices are all doing very well. Therefore, right now, the economics of extracting these minerals at Vulcan, at depth, have changed significantly for the better.
One of the very last holes that were drilled at Vulcan was VUD015 (but not quite deep enough). IMVHO, VUD015 was the most encouraging hole of them all. IMVHO, RIO should have drilled a few holes very near VUD015 i.e. at Vulcan North. Their mistake, FMG's huge slice of luck!
Now FMG have drilled VUD018 right next to VUD015 and to a much deeper level, which IMVHO will be where the much higher grade Copper, Gold, Silver and REE mineralisation will be.
IMVHO, FMG have well and truly done their homework, and I thus believe that with VUD018 they are on a winner i.e. the assay results will definitely be good enough for FMG to drill additional holes in the area. In fact, I believe that FMG were so encouraged by what they saw in the VUD018 drill cores, that they went straight ahead with drilling at VUD019, which is only about 1 kilometer south of VUD0018.
Cheers.
TAS Price at posting:
9.4¢ Sentiment: Buy Disclosure: Held
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