so to fill in a gap in knowledge and why the change for the earlier large low grade resource, and the more recent high grade resource.
under the jorc code all resources must be reported with "reasonable prospects for eventual extraction". at the time of the original resource the price of the dominant metals could not support the 1.9g/t 3e head grade, so a selective highgrade mining proposal was made. all following so far?
now comes the reason that the deposit is still in the ground - selective mining is expensive. plat aust could never make the deposit financial under the prevailing metal prices.
fast forward to today. paladium has a market value almost equal to gold, and that is the dominant pge, so if the basket of 3e is close to the gold price then 1.9g/t is pretty attractive -- especially when there are 4.5mozs plus. add in the lower mining costs from open cut bulk, compared to selective underground, and now the economics start to look a whole lot better. the thing to watch is the metallurgical recovery of the metals.
final comment - what about the nickel? at 0.3%, if this can be extracted, then there is a lot of this metal, and that could be the cherry on top.
strong buy from me -- thanks to the others contributing to this discussion.
FME Price at posting:
21.5¢ Sentiment: Buy Disclosure: Held
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