A very good question. But not being a GEO and only a Bean Counter, I really can't help you there, unless I have a stab in the dark.
I would have thought though, that a 300,000 tonnes per annum plant would not cost that much. Maybe, if I remember, I should ring the Management of GGY (now CTU), to see what it was planned to cost them before they decided to sell the whole tenement to KZL instead, when they found that even if the DFS showed that it could have been profitable, the risks involved to get it to production far outweighed the probablity of return profits. Besides GGY had Geos, Administration staff and some plant on hand, from memory, while, IMHO, we have not. The CEO himslef was a GEO plus there were others as well.
All I know is that if we are going to get the 6,000 tonnes of copper per year as you suggested, at the current $8,000 per tonne or thereabout, the return that we would get from that would be around $48,000,000 before all necessary costs, including getting it to a destination.
If you take in consideration al the costs that you have listed, such as power, road realignements, and everything else that will go with it, if I was the one to decide and recommending what to do, I would be remaking all my calculations over and over again before deciding. But that's me. And not having any figures available in front of me, I can only guess the same as anyone else.
Consider also that we will have to appoint a lot of new staff, supply accomodation, Administration people (AP cannot do it by himself), definitely more Board Members that would have to specialise in the construction of the plant and the running of the operations, marketing etc..
Someone suggested that we may contract the whole operations until we start mining the ore out, but that will cost a hell of a lot of money too which we haven't got. And I doubt that any big Chinese Investor would be prepared to put the money up front via an offtake agreement, because what we will be able to supply is very minute and irrelevant to their requirements. Again I am guessing and only trying to explain my views.
All I know is, that what we are doing is speculating on what may happen, and the only one that can tell us one way or another is AP himself. The problem is though, that our beloved AP does not know how to communicate or he does not want to, leaving us in the dark to ruminate.
My feeling is, as someone has wrote before, that in all probabilities the tenements will be sold off, if possible, and if we find someone that wants it. And, with the money keep on drilling and drilling and more of the same in the hope to find something bigger that will attract the attention of outside forces.
If it is true what is written in the webpage, we may know soon.
Please DYOR.
Buddy
AAR Price at posting:
32.0¢ Sentiment: None Disclosure: Held
