Mate, if you think it's cheaper to buy anything in Iron Ore country than in gold country you're living in fantasy land. Everyone up that way is used to BHP and RIO wages, productivities and contract pricing. It will cost twice as much to get anything done in that part of the world than it would in the sticks.
Agree though that some infrastructure will not be required - airstrip, power, etc...
No one would ever consider exporting the ore. The only time I've heard of that was a project in Greenland - exporting to Spain. They had a head grade of 30g/t though and were only producing less than 150ktpa, so it was worth it.
The Argonaut valuation looks fairly reasonable to me. Gruyere is also not an unreasonable comparison although I dont know if they've allowed for a POX plant. Personally I think the production rate will be higher, maybe 10Mtpa, the AISC will be lower, maybe sub-$800/oz, and the capex will be double or triple what they have allowed. Still a reasonable valuation though.
Interesting that it looks like they have valued it on the basis of not doing a JV and having to come up with all the capital themselves. That would be a mistake - these guys dont have the skill set or mentality to build a mine like this.
I'm back in since the VG announcement.
Mate, if you think it's cheaper to buy anything in Iron Ore...
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