Ore sorter ain't going to be too effective i feel, but DMS...

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21/07/19

07:57

Post #: 39617106
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Originally posted by Ammbush97: ↑

" Beneficiation is the key (either DMS or ore sorter) increasing grade by 2.12x withore loss of 10%. The net effect is taking a 3.5% Pb mined grade and upgrading to6.7% Pb prior to concentrator. "

- We assumed a loss of 10% in previous PFS as stated by EUROZ above in the quote, yet it's now substantially lower than 10%.
- The DMS will improve how we process the lower grades of the resource completely.

@sinic and I have run similar rough models in relation to an estimated NPV correlating with the indicated portion of the resource moving up etc etc.
By pushing the plant to a hopeful 1.2mtpa from 1mtpa, we could see a marginal difference alone prior to including the newly improved recovery grades + DMS etc etc.

A nice 15mt Indicated resource portion after this drilling program with such low OPEX would highlight the project. Yet, touching on upgrading the Plant capacity, our CAPEX is now 95mil. If we upgrade pant to 1.2mtpa and assume a cost of maybe 150mil (The same as G1A which is a very similar scale and sizeable project), with Henan our JV partner covering the contributing 25% of costs, that brings our CAPEX down to approx 112mil which is extremely economic with an NPV of approx over 500mil, IRR being HIGHER than previously released and exploration upside around the region as it's completely underexplored when using modern techniques. (Modern exploration methods used by PMY to date correlated in a massive increase in our resource to date, with a better understanding of the geology and firmer grasp of the complexity)

Not to mention we have a granted mining license and EPA approval completely derisking the project, adjoining our byproduct Silver breaking out.

(G1A was financed for approx 100mil collectively, taking it from a 37mcap to approx over 130mil)

For those new investors here or if you're looking at jumping on board, please conduct your own research, we need tight hands and a sticky register.

Cheers

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Ore sorter ain't going to be too effective i feel, but DMS should kill it given the SG differentials - little risk to the downside for us here.

The elephant in the room for me how the drilling infill ties it all together as that's whats going to drive mine life, upgrade in plant size & NPV.

The high cons grade is a bonus sweetener that will bring a premium for our offtake... nothing like high grade con for blending flex.

RT

PMY Price at posting: 0.9¢ Sentiment: Buy Disclosure: Held
6 Upvote

0 Great analysis

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