Ann: Tier-1 Scale Maiden Mineral Resource at Julimar, page-355

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pangea

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11/11/21

12:05

Post #: 57491108
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Originally posted by Tangible: ↑

thanks for the response, i respect your views

please elaborate on your concern regarding the recoverability of low grade disseminated sulphides. are you somehow suggesting that the recovery rates may be potentially so low they would be considered uneconomical, despite the fact that gonneville on its own will be a large scale mining project?

or rather is your concern that they haven't necessarily dotted the i's and crossed the t's in line with the JORC code? diligent investors will see the caution statement that they issued in the report, here it is actually for all to see:

i would concur with you that all things equal you would expect the recovery rates of the higher grade material to be higher that low, but that is not to say that the low grade material cannot be economically recovered and sold.

im sure you would be aware, but for those interested there has naturally been a lot of research into metal recoveries from disseminated sulphides. here is a quick example of one method, being the CESL nickel process (https://www.teck.com/media/CESL-Publication-Nickel-Unlocking-Disseminated-Nickel-Sulphides-CESL-Process-2010.pdf).

oh and this is from disseminated nickel deposits, based on the numbers reported about 25% of chalice's deposit is high grade which as stated enhances the economics of the project.

one thing is for certain, even at this early stage of testwork, i would much rather have a truck load of disseminated sulphides in between the high grade zones, than have plain worthless dirt. im sure you would too.

lets say a worse case scenario involves no economic recoverability of the disseminated sulphides, well the high grade resource reported is just fine with me knowing full well chalice have only scratched the surface at julimar.

in terms of your environmental concerns, i will not respond directly but will note that when a significant sum of potential royalty revenue is involved for any government, all of a sudden locked doors become open.

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I raised three principal concerns in my original post which CHN has failed to address in their announcements:

1) Management of Acid Mine Drainage resulting from future mining within the Perth Metro catchment adjacent to the Avon National Park

2) Gov't approval delay to CHN's proposed Hartog drilling resulting in possible start-up during the volatile bushfire season

3) Mixing two different ore types with two potentially-different metallurgical recovery profiles into a single MRE before sufficient study was undertaken to support recovery rates in +75% of the disseminated material between the sulfide-rich lenses.

When you back-calculate (i.e. crudely remove the high-grade from the low-grade disseminated material) the resultant grade of the 252 Mt greater than 0.4%Ni-eq cutoff and less than 0.6%Ni-eq cutoff is 0.52 g/t Pd, 0.12 g/t Pt, 0.02 g/t Au, 0.15% Ni, 0.07% Cu and 0.015% Co.

How Much Revenue Can Be Captured At These Concentrations???

A more responsible approach would have been to constrain the MRE based solely on selective open pit mining of the modelled high-grade lens material where indicated recoveries are better understood and to include reporting of the disseminated material captured within these pit constraints as inferred pending metallurgical study.

P

CHN Price at posting: $9.80 Sentiment: None Disclosure: Not Held
1 Upvote

0 Great analysis

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