“It is a bit of a Lang Hancock long-term visionary proposition!”
In the above Proactive video, Dr Giles lit up at the
4:45 minute mark when talking about
Grants Iron Ore Basin.
At the
5:20 minute mark on that same video, Dr Giles references the
Grants Iron Ore Basin potential could be
billions of tonnes of iron ore resource.
At the 2017 AGM, Dr Giles did say that Grants "
could be the biggest iron ore deposit in Australia" (around 66 minute mark of the AGM video).
While Dr Giles said billions, for the purposes of my ‘theoretical calculation' I will assume just 1 billion tonnes of iron ore resource from the
Grants Iron Ore Basin, until we get the results of drilling.
At the
6:20 minute mark on that video, Dr Giles confirms that SIMEC's reconnaissance drilling program, to test the
Grants Iron Ore Basin, is expected to start early October 2018.
What is attractive for SIMEC about the
Grants Iron Ore Basin is a potential Pilbara-sized iron ore project only 8 km from the Broken Hill-Whyalla rail line.
Based on a 1 billion tonne iron ore resource, potentially that could provide SIMEC's Whyalla Steelworks with premium-grade (and low impurity) Fe concentrate for the next
55 years (at 6 Million tonnes per year) based on the following scenario:
|
Column 1 |
Column 2 |
Column 3 |
| 1 |
A$/US$ FX rate:
|
0.7253
|
On 26 September 2018
|
| 2 |
|
|
|
| 3 |
62% Fe Fines - Low Alumina (MBIOI-62-LA) US$ (see Note A below):
|
73.92
|
11 September 2017 (see attached PDF)
|
| 4 |
|
|
|
| 5 |
|
|
|
| 6 |
Grants Iron Ore Basin: Fe Resource (Estimate):
|
1,000,000,000
|
tonnes
|
| 7 |
|
|
|
| 8 |
Grants Iron Ore Basin Yield (see Note B below):
|
33%
|
Assumed to be the same as the Grants estimated yield (page 28 of 2018 Annual Report)
|
| 9 |
|
|
|
| 10 |
Grants Iron Ore Basin Fe Concentrate:
|
330,000,000
|
tonnes
|
| 11 |
|
|
|
| 12 |
Grants Iron Ore Basin: A$ In-situ Value (In Ground Value):
|
$33.632 billion
|
|
| 13 |
|
|
|
| 14 |
|
|
|
| 15 |
Grants Iron Ore Basin A$ Fair Value based on ISV% (see Note C below):
|
A$
|
|
| 16 |
2%
|
$672,648,559
|
|
| 17 |
3%
|
$1,008,972,839
|
|
| 18 |
4%
|
$1,345,297,118
|
|
| 19 |
5%
|
$1,681,621,398
|
|
|
Column 1 |
| 1 |
A$ Fair Value/ Fully Diluted Shares (based on 236,905,919 shares):
|
| 2 |
$2.84 (2%)
|
| 3 |
$4.26 (3%)
|
| 4 |
$5.68 (4%)
|
| 5 |
$7.10 (5%)
|
Note A: I assumed beneficiation results in a saleable 62% Fe concentrate (at a minimum). Both the IMPTEC Waterless Ore Processor and Super-Fine Crusher, if they can be commercially upscaled, have the potential to enhance the Fe concentrate closer to 68-70%.
Note B: A yield of 33% means 67% of the iron ore resource, as dug from the ground, is discarded during beneficiation resulting in 330 million tonnes of upgraded saleable Fe concentrate.
Note C: In-situ Value ('ISV') factors ranging from 2% to 5% are rules of thumb used in the industry to value mineral resources under the VALMIN code.
62% Fe Fines - Low Alumina (MBIOI-62-LA) Specifications
Price: US$ per dry metric tonne, CFR China
Material Origin: All Origins
Fe Content: Base 62.0%, Range 61.0% to 63.5%
Silica: Base 5.0%, Maximum 7.0%
Alumina: Base 1.5%, Maximum 1.9%
Phosphorus: Base 0.08%, Maximum 0.09%
Delivery Port: Base Qingdao, normalised for any Chinese mainland sea port
View attachment 1314200
Reminder: The Grants iron ore resource (304 million tonne iron ore resource; 100 million tonnes of premium-grade Fe concentrate; at an estimated yield 33%) is interpreted to be the faulted end of a very extensive iron ore basin (the
Grants Iron Ore Basin), the full iron ore potential of which remains to be initially tested by SIMEC during October 2018.
View attachment 1314203
Cheers
These are only my random (... the Grants Iron Ore Basin continues to be on my 'elephant' watch list ...) thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts. No tumbleweeds were harmed in the writing of this post.
HAV fanboy:
still drinking the grape, orange strawberry, pink lemonade, strawberry kiwi, blue raspberry lemonade, berry cherry, cherry, tropical punch, watermelon, lemonade Kool-Aid 
(20min delay)