Winchester project has a NPV $184M with $3.5-4mil required to continue the study and provide for start-up costs. Raising the funds might cost 30% in a joint venture or share dilution.
Other news in this report is the magnesite rock resource estimate was first disclosed by KOR in 2007 in an annual report. It’s sat there in the ground for 10 years and I figure KOR has waited for more demand and better prices to make it viable to dig up. The “game changer” according to the report is a new discovery of Magnesium-ion batteries that are far superior to Li-ion.
A quick look into this technology reveals a recent breakthrough with a new electrolyte however this was a first technology lab demonstration and which the scientists said there’s a long way to go before the technology might become viable.
So demand for magnesium carbonate might increase significantly if this battery technology becomes viable sometime in the future. If it does it will then be more feasible for KOR to mine and sell the magnesite rock. Meanwhile according to this report MgCO3 is mainly used by the Chinese to make bricks for kilns. The report says this was just a preliminary, low level technical and economic assessment.
DYOR, particularly into Mg-Ion batteries. In the last 10 years this is the first of many breakthroughs scientists need to make Mg-Ion batteries commercially viable.
I think the Winchester project it’s still a long way if it ever becomes viable at all.
KOR Price at posting:
3.8¢ Sentiment: None Disclosure: Not Held
