ITC impress energy limited

independent advice, page-6

  1. 341 Posts.
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    Been doing some more research, and quoting from a HRR ASX announcement of 11/06/2003

    "The Indicated and infered mineral resources estimated by a previous tenant holder (not Centaur Nickel or Centaur Mining & Exploration Ltd)(in liquidation)) at a 0.5% Ni cutoff grade are [email protected]% Ni for Siberia Taipan and 17.4MT at 0.7% Ni for Siberia Tank.

    The Siberia Project area is located 30km SW from Heron's Goongarrie Nickel Project and represents an ore source within close hauling distance of any future Goongarrie laterite facility. As such, the Siberia acquisition can displace Heron laterite resources located more distant from Goongarrie"

    It remains to be seen what proportion of the total Siberia Tank area the 7 leases ITC referred to in their announcement form.

    If these 7 leases form the whole of Siberia Tank, according to my "rough as guts" calculation, then their 10% free-carried interest in metal value would be worth

    17,400,000 tonnes * 0.7%*A$21300/T*10% ITC interest = A$260m. Spread this over 20 years =13m/year. Take away from this cost of production of course, and the rest is ITC's share.

    Note that this was the 2003 figure from someone else other than Heron.

    As in one of my earlier posts, Heron stated total Siberia resources as 144 MT @0.7+% in a presentation to the 2003 World Nickel Conference. If this is correct, and the Siberia Tank resource has increased in the same proportion as the total Siberia resource, then the metal in ground value attributable to ITC increases to A$548m/20 years = A$27.4m/year.

    Have I got this right ?? Would appreciate if someone could go through my figures and confirm or correct.

    vermav


 
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