Mine Plan vs Lifeof Mine as defined by JORC., page-2

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Docweemo

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22/07/23

08:03

Post #: 68921331
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Originally posted by Goodheart: ↑

What is important is the mine plan . . . much more so than the life of mine as expressed in the terms of the ASX / JORC regulation.

The ASX / JORC regulation does not paint the full picture. As stated by Mr Arden from Bell Potter, the ASX JORC regulation is keeping investors in the dark.

The mine plan for Koolan is discussed in the following statement from a 2021 announcement . . .

"Mount Gibson is actively assessing potential opportunities to extend the mine life of the Koolan Island operation. Work has to date focused on optimisation of the Main Pit orebody and is now transitioning to known satellite deposits on the Island."

Later in 2021, Peter Kerr addressed Diggers and Dealers with this same mine plan.

Then in 2022 approval to carry out that mine plan was sought from the Western Australian Government. On 6th December 2022, an application was lodged to extend the mining footprinf by 143 hectares and with a stated end of operation date of "approximately 31.12.2030" . . . with a start date of 2023.

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I really appreciate the discussion between you and miningnut on this point - I’m learning a lot. What I’m taking away is that the current stated mine life of 30Jub26 is clearly conservative. There are risks to investing on the basis of a longer estimate, but there are always risks when you’re trying to forecast what’s going to happen in three years. From your discussions, the risk that the mine will run out of iron ore worth mining seems relatively small - obviously still there, but compared to a war with China or a crash in IO price, or a global recession as we finally realise we’ve got to slow economic activity to combat climate change, this does not feel like a biggie.

MGX Price at posting: 46.5¢ Sentiment: Buy Disclosure: Held
3 Upvote

1 Great analysis

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