Indeed.
Bigstar, i used really conservative estimates in head grade, block model size, and copper prices of $2/lb.
The methodology i used is ONLY for juniors that had given a report on their project size and had an understanding of the head grades across that model.
The key question in a junior discovery is the dollar amount that can be extracted per ton of rock. Any geologist, engineer and investor should ask himself that important question.
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Your valuation is on the Khongor project and not the Khul Morit project...i think investors have not grasped that fact too. That is, VOR has 2 possible porphyry systems and not just one.
To my knowledge, to get a basic porphyry project funding, we need more tonnage and a head grade between 0.5%-1.0%. Of course, the higher the tonnage and head grade, the better. CAPEX will most definitely be in the billions as these are huge capital intensive operations. Also we have no idea on strip ratios and cut-off grades employed. As such, my methodology for Khul Morit was just basic. I have written to the management to get some information on their current anomaly size at Khul Morit. From their announcements, it seems that they have multiple anomalies 1500m X 200m X 900 m depths....
Do remember that BHP offered Ivanhoe the Oyu Tolgoi project with similar discovery intercepts. We all know what happened when Ivanhoe went deeper into the system. There is certainly a good chance of an elephant size deposit here...Oyu Tolgoi had 3.75 billion tonnes at 0.98% copper.
Khongor is stated as 400m X 150m X 200m. Khongor comprises a large Induced Polarisation (IP) chargeability anomaly that extends for 1,600m by 380m.
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