Only read through it quickly, but looks to be a fantastic announcement.
Indicated & inferred hematite resource increased from 102mt to 182mt. A 78% increase is great, it allows for possible expansion of production down the track. The ability to move from 2mtpa to 4mtpa would have a substantial affect on the share price.
Indicated portion of the resource more than doubling from 25mt to 55mt. The more certain the resource, the more comfortable possible strategic partners will be. Further drilling will no doubt increase the indicated portion and then move further to reserve.
Only 45% of strike drilled so far, meaning hematite resource has further potential to grow. If the hematite resource could be extended to, say, 300mt, you'd be looking at a 5mtpa operation having a 25-30 year mine life.
Feasibility study to be completed within the next few days which is the last hurdle to be jumped before Mining Licence application. Application to be lodged before EOY.
The head grade of the hematite is low, but the key is that it can be upgraded to 64-65%Fe with an OPEX of $41.
Tick, tick, tick. Great work, feeling confident that there will be strategic partner interest here due to low CAPEX (intensity and gross amount), low OPEX, and premium grade product.
EQX Price at posting:
65.0¢ Sentiment: Buy Disclosure: Held
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