I see a few things in a different light. PFS was done based on toll processing of ore with sale price of 700$/t and AISC around 350$/t mark. Without speculating about potential price increase of finished product on site processing should reduce the AISC by a fair bit possibly down to 250$/t. This cost reduction coupled with better quality control is the main justification for on site wet processing plant.
DFS will be based on GW resource only, Tiger resource is in the inferred category, there is no mining license etc.
I don't think that HRM is produced from overburden near surface above the kaolin as this would mean anyone in the whole area can start digging it and selling as top layers are pretty uniform. It is produced using the kaolin ore, most probably the oversize particles can be used (CRM and PRM use only under 45 micron).
Not sure if this was mentioned before but for me it is the first time to see mention of selling concentrate (in today's presentation). This is partially processed ore with larger sand particles removed. Much simpler process than the whole multi stage refining and while it is relatively easy to produce in a simple wet plant there may be possibility of dry production by sieving in the same process as potentially used for production of HRM. This has a potential for a nice reduction in shipping costs.
ADN Price at posting:
19.0¢ Sentiment: Hold Disclosure: Held
