Bring on 40 cents, page-56

Hi mate, I am here to study CAP so please dun take it as i am here promoting MGT by any means, however there are few guys from CAP constantly trying advocating CAP in MGTs threads. Nevertheless both projects have some serious potential IMO.

The info is provided by you is correct but want to add few things.

1. The average grade as per the SA magnetite strategy publication is 19.5% for MGT and 17% for CAP.

2. MGT has lower stripping ratio actually close to zero means lower oxide material or wastage which is also near surface.

3. The idea of selective mining is very logical. Lets take CAP had PFS in 2017 could nt stepped further. The bulk mining approach requires high opex C1 cost also means very high capex. The PFS 2013 failed on the basis that next year in 2014 the IO market got collapsed reached to $58/t. The selective mining approach means to mine high grade ore with low opex and which also means low capex required. Once you start with a production you can imagine the potential with 5.5BT resource at the back yard.

4. Muster dam tenement has been recently allocated by SA Govt to MGT through competetive process. It was clearly mentioned in an announcement that SA Govt want existing synergies to be used in Muster Dam while working on PFS at razorback. So the work has already started at MD project.

5. MGT also has a clear advantage over NEXT ORE ore sorting tech which has produced magnificent results in south america. This tech significantly reduce opex cost, saves power,water and seperates magnetite from wastages with 99% accuracy using MRI technology. It has a potential to lower opex by $10-20 per ton. MGT has exclusive rights to use that tech for the next 4 years in Australia.

6. Far near to port pirie or port playford and railway lines.

7. eDTR 15% of MGT is also better compared to CAP 13.9% which actually means after davis tube test recovery and satamaghan procedure out of fe19.5% grade the recovery would be 15% eDTR for MGt, the rest would be wastage.


The clear advantage CAP is having a brilliant capital structure and they would use it in much better way for MC determination compared to MGT. Both are great projects IMO.