Yes It could end up at a higher grade than what the hand held is saying. The point I am making is that because the surface grade to say around 100mts is between 4 and say 25%Fe,the higher grade will be lost when averaging out the lower grade ore. I believe the grade to be an acceptable upgradable ore needs to be around 25%Fe minimum. The point then is they would be throwing maybe anything below 20 to 25%Fe in a heap to rejuvenate the landscape after the mine is finished. They could drill down to the 36%Fe,which could go a lot deeper,who knows at this stage. At 150mts,they could be only having 50mts of beneficial iron ore to beneficiate into 70%Fe concentrate/pellets. That could still give a reasonable resource,but I would think be quite expensive to produce because of the 100mts of low grade they would use for landscaping.
Need to look at the likes of AGO and GBG cost of infrastructure to end up with a 70%Fe product.I think you will find it could well be into $2 billion plus.
I am not saying that LEG will not have a decent end resource,just trying to put a point of view that,I personally do not think it is brilliant grade of iron ore at this stage.Yes 70%Fe is,but at what cost with it not being an average drill hole feed of 36%Fe with all the low grade to get out to get to the high grade.
Regards Westcott.
LEG Price at posting:
3.1¢ Sentiment: None Disclosure: Held
