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23/02/18
07:59
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Originally posted by pygmyhipppo
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Thanks, Scarpa for your excellent reply.
I would like to add one thing (also in view of ML's tweet mentioning debt raising) regarding the JORC Code:
"A mineral resource is a concentration or occurrence of solid material of economic interest... ...that there are reasonable prospects for eventual economic extraction" So a resource doesn't mean it can be extracted economically - IMO not an issue given the truly enourmous size of the Manono/Kitotolo deposit, it simply outclasses everything else by a wide margin (quantity has a quality all of its own), but the Twitter trolls are working overtime to cast doubt here.
"An ore reserve is the economically mineable part of a measured and/or indicated resource," i.e. requires some level of feasibility study to demonstrate that it is economic. I would think that this is necessary for any debt funding.
My point is I don't know if anyone would provide debt funding based on a mineral resource estimate alone without a feasibility study.
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If the Chinese have fronted up more cash than the market cap to build associated infrastructure, just my thoughts, but I can't imagine it would be a problem to provide debt funding for this as it's kind of peanuts in the scheme of things.....