AW1 General Chat, page-2889

You don't know yet whether it is economic or not.

That's fact.

You think it is not economic.

That's your opinion.

The company seems to think it is economic - but no doubt the economics will improve as scale is added via expansion of the existing resources - a primary purpose of this year's drilling campaign.

Based on the information I have, its my opinion that it will likely be very economic.

Under a camp scenario:

Mining will be relatively cheap. Open pit, near surface deposits, high grade ore. The downside appears to be more than one pit is required, but the pits look simple.

Processing will be cheap. High grade ore, simple beneficiation (with very little CAPEX required).

Transport costs will be via ship - so very cheap compared to all other means of transport. Unclear where the concentrate is to be shipped to, but given Canada's views on China, likely to the US. So again, that will be cheap.

Environmental remediation - looks pretty limited given its the artic desert and, based on current met work and studies, does not appear to require any chemical processing.

Consensus - whether right or wrong - seems to think copper prices will remain high for the foreseable future. So likely very profitable, even at small scale.

I don't see viability outside a camp scenario but I might be wrong.

Management has taken the right approach in my view - they need to expedisiously progress the project to the point where Bay has to start pulling their weight financially.

The deep stuff still looks very promising - AW1 did an outstanding job of proving that the deep layer is likely very large last year. AW1 cannot afford to keep exploring it though by tapping the market, they will need to fund it via revenue.