Well those original BFS numbers are going to look small in reality if VRX can pull this off. After the initial year, I can see them having to really ramp up production just to try and keep pace with the obvious demand, maybe double to 4 million TPA for Muchea and 4 million TPA for Arrowsmith. Apply a more realistic NPV of 5 or 6% to 8 million TPA production and see what you can come up with. It doesn't really shorten the mine life, as with a bit more test work the inferred ore reserves can be upgraded to probable reserves once proven. I can also see that on-site downstream processing being the only logical solution for such high demand. If we can't move a mountain of silica sand to the customers fast enough, bring the customers to the mountain.
VRX Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
