MKR manuka resources ltd.

Better than working at a remote site, I have setup my own remote...

  1. 3,102 Posts.
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    Better than working at a remote site, I have setup my own remote sites so know a lot about the subject of generating ones electrical, water, etc needs. But let me throw out some ball park figures so people here could come to their own conclusion on how much it would cost to be prepared.

    In their May 2020 prospectus they estimated power costs at ~$450000 per month, 200K for the 1800kw ball mill and 250K for the rest, roughly around same time period wholesale diesel prices were about $1/L so it makes it easier to do the math. Thus they estimated 450000L/month of diesel for 24 hour operation in regards to the plant for a month. We should tack on another 100K litres because with other trucks on site and to cover up any underestimations elsewhere, let us estimate 550000L/month at Wonawinta.

    From memory I think you would be looking at $100K per 100K litres for storage that would meet all necessary NSW requirements. Maybe someone with recent knowledge on storage prices could pipe in, but it is around that mark. So they would need $550K per month of storage, they likely already have around a month like you said. So if we go to 6 months storage they would be looking at a cost of about $2.75M for storage and ~3.3M for the diesel if they already have a month.

    Now maybe you think 6 months is crazy and $6M for "peace of mind" isn't worth it. So what if we get capacity out to 3 months? That would cost them 1.1M for the tanks and 1.3M for the diesel, or 2.4M total. Seems reasonable no? This is why when implanting any idea you always push something more crazy out there and then come back to what might be considered crazy if you opened with it.



 
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