market is waking, page-9

firsova,

20 million tonnes at 5.6% heavy metal is 1.12 million tonnes of heavy metals

25% is andalusite and is valued at $300 -450 per tonne
25% is Magnetite and is valued at $100-125 per tonne

So Mining 20 M tonnes pa
there is no data on mining recoveries, apparently the work has been done but who knows? Any ideas? Lets be generous and assume 90%
then ,
20Mtpa mining of 5.6% material = 1.12M tones of HM
forget the andalusite for the moment - there is no current technology or process route to extract it.
then you only have the magnetite at 25%
then the output for magnetite is
1.12Mt @25% mag% * 90% recoveries.
=252,000 tonnes of product
Even if you sell this for $100/t (unlikely) then the revenue will be $us25M pa.
The issue is the grade is so low. In australia bhp rio mine ore which is 64% Fe, FMG 58%. Guado is 1.4%. for guado to go it alone with magnetite and make a profit, then the costs have to be less than the revenue. You can't mine 20 million tonnes of sand pa and extract a saleable product of 252,000 tonnes and make a profit. Forget the mineral sands - it is irrelevant. The key is the andalusite. I have no idea if it is commercial. My reading is that the andalusite is more hope than reality. The test work that was done last year (remember bulk samples going to the lab q4 2013) has never been released.
a hold on guado but if the copper at ill norte comes in then watch out.
cheers
omg