Ben makes an important point that the key is in understanding that the projections of 3000 tonnes up to 12000 tonnes per annum is of Carbon SULPHATE not Carbon METAL. See figures below that I hope will clarify for you:
*89mil tonnes Sconi resource at avg Cobalt metal (not sulphate) of 0.6% equals 53,400 tonnes total Sconi cobalt metal resource
*AUZ initial projection of 3000 tonnes Carbon SULPHATE per annum for 20 years (Carbon sulphate is what is created through ore processing and contains approx 20% carbon metal). 3000 tonnes Carbon sulphate x 20 years equals 60,000 tonnes Carbon Sulphate (or 12,000 tonnes Carbon metal - which is only 23% of Sconi total carbon metal resource as stated above)
*Ben states looking to up production target of Cabon SULPHATE to 12000 tonnes per annum, which is the equivalent of 2,400 tonnes of Carbon metal per annum, over 20 years equals 48,000 tonnes of Carbon metal (or 240,000 tonnes of Carbon Sulphate) which is 90% of Sconi's total carbon metal resource
It is important to note the AUZ clearly states that 20 years production at .11% average feed grade of Carbon metal is based on the projection of processing 3000 tonnes of Carbon Sulphate per year not the 12,000 projection. The life time of the Sconi mine at 12,000 tonnes of Carbon SULPHATE per year at .11 average Carbon metal feed grade is totally dependant on the proportion of the 89mil tonnes resource that averages .11% feed grade.
Hope that clarifies
AUZ Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
(20min delay)