ggg nearology - ree, ta & nb multi-element

Jaydee, this post also serves as an answer to your post.
I would say current EV of 20ml is a very conservative estimate of IGV (In Ground Value) based on the stated exploration target, but, this is a very big but, how much can be JORCd/proved and how economical can they be mined at.

The good thing with the deposit is there seems to be more than just Ree, looks like the main products here in focus are Ta (US$210/kg) & Nb (US$40/kg). Surface sampling also returned high grades of Zircon & Ree with median of 1000ppm, that's just bonus.

Original acquisition news stated 200-500mt target with average grades between 1,320 and 1,480 parts per million (?ppm?) Nb and 110-130 ppm Ta. Let?s all use the lower end of the stated figures then apply heavy discounts so the calculated figures are more towards unrisked price rather than all hyped up.

200mt @ 0.132% Nb, 0.011% Ta, 0.1% Ree (disregard Zircon credits for now as the potential uranium levels may not attract premium price, which would be otherwise available to materials suitable as blend feed).

Value of Nb: 0.264mt = 264ml kg @ US$40/kg = US$ 10.5bl
Value of Ta: 0.022mt = 22ml kg @ US$210/kg = US$ 4.6bl
Value of Ree: 0.2mt = 200ml kg @ US$50/kg = US$ 10 bl

Apply 90% discount to exploration risks & future dilution (or say only 10% of stated 200mt is found/JORCd), then we get 20mt, US$ 2.5bl.

Say we only retain 50% interest, US$ 1.25bl, A$1.4bl.

So potential IGV (In Grounds Value) of A$ 1.4bl based on JORC 20mt @ 0.132% Nb, 0.011% Ta, 0.1% Ree (disregard Zircon credits). Im relatively comfortable that this calculation is to the conservative range as I have applied 90% discounts to the stated target figures. If you look at our neighbour GGG, their Ree resources alone is JORCd 457mt @ 1.07% TREO, giving total of 4.9mt contained Ree (US$ 245bl). I have only used 20mt @ 0.1% Ree, total of 0.2mt contained Ree. Given the close proximity, one should think the Ree resources here should be more than 0.2mt, or at least of better grades than 1000ppm. And I havnt factored in any expected increase in the price of Ta, Nb & Ree (all of them declared as critical to the future by EU, & Ree supply is getting tighter). The future price increase could be a significant sentiment driver. Also note RMR is applying for additional license covering 970 km2, what they can find on such massive size tenements??no need to cover until we get more details.

Then apply another 80-90% discount for the project economics, you get a range of A$140-280ml.

I have applied heavy discounts throughout the calculation as I would like to refer back to my figures & know that they are rather unrisked price, but you can apply your own discount figures based on your own risk profile/acceptance. There is no right or wrong answer here as everyone has different level of risk aversion.

One more thing, value never = price in the market, especially in the kind of market we are in now. I think you will find RMR closely riding the tails of the overall Ree sentiment and GGG?s SP performance in ST, even though the market needs to realise RMR also has more valuable element of Ta on offer, also Nb is only slightly less valuable but also has very tight supply.

Would like to know what the Ree experts think. OT, any comments?