One thing that I didn't say in this post is that I expect MLS to target the high end graphite use - EVs - where there appears to be a shortage of good quality graphite. In terms of low economic grade reserves, or can't be scoped up to the required quality for EVs, this market IMO is unlikely to be available to MLS (given China has loads of low quality graphite resources (what they have shortages on in the links and what the prospective companies seeking to develop graphite deposits are suggesting is the future shortage is in the higher quality deposits that form the basis of the inputs to EV -
http://www.syrahresources.com.au/graphite-and-its-uses). Hence why looking at the grade, Focus Graphite has is important as it appears to be a high quality deposit.
My take is poor management have a role there at Focus, but slow progress is probably the other factor as new exploration plays are emerging in Africa so I presume the market might be questioning the speed to which Focus can bring its deposit to market (and if it misses the boat through slow progress whether it can enter the market).
Just a guess and I will need to do more reading and research but in other words MLS also needs to get a move on and see what is there and if economic ensure it takes its window of opportunity for development (and be more proactive to what Focus has been doing).
For example Focus Graphite i.) did its feasibility study back in 2014 which had an IRR of 30.1% and capital payback period of 3 years with likely return been even greater now where prices have gone IMO IMO, ii.) signed an offtake agreement with full production to be taken by a Chinese entity in 2013/14 (but not sure given delays whether this Offtake remains still on the table), iii.) calls itself the most advanced new graphite project in North America, but iv.) yet has been stuffing around with its Final Investment decision, getting project funding etc etc and I just wonder whether more active management would have got this to mining a lot earlier (assuming it has defined the resources for mine life which it has appeared to have done so but slow progress is the real issue there and why).
http://www.focusgraphite.com/lac-knife/ .
This is a key comment in the above link in italics below from Focus as well btw and why I am hopeful on MLS in the graphite space:
"
On May 27th, Focus Graphite announced it “Succeeded in Producing Extremely High-Performing Coated Spherical Graphite for Lithium Ion Batteries”. The results from coin cell performance testing performed on Lac Knife Spherical Graphite (SPG) produced outstanding performance metric results. The benchmark products have a typical irreversible capacity loss (“ICL”) of 6-10% ICL. Lac Knife SPG showed two ICL test results measuring 1.01% and 1.44%, truly remarkable results. Essentially these battery performance tests illustrated that the Irreversible Capacity Loss (“ICL”) was reduced by 75% compared to the benchmark products available in the market today. These tests confirm Focus’ capability to tailor lithium ion battery anode grade SPG and value added products to meet the most stringent customer specifications."
If MLS does find a decent quality deposit there just wondering whether there is potential for some form of infrastructure sharing (i.e. roads/transport/power, albeit I note Lac Rainy is approximately 15 km east of Route 389, a paved highway which travels north to Fermont) to reduce development costs for both and therefore improve project viability (assuming a deposit is located that has a 10 year to 20 year plus economic life). Obviously getting Chinese interest would help MLS as well.
I am not sure how to answer your questions as I have some opinions but people need to do own research. And given this is essentially a research thread if others have a different opinion please share as this is an information sharing forum anyway. Anyway my opinions are below and I am sure some won't agree:
Zinc/copper/cobalt
Looking at the latest quarterly -Post #:
32778037 - they still refer to the style of mineralisation is similar to other base metal sulphide deposits in the Yilgarn Craton, particularly Golden Grove at Yalgoo to the west of Manindi, and Teutonic Bore-Jaguar in the Eastern Goldfields. What they are essentially saying is that at Manindi it is highly possible that they want to be able to produce two separate concentrate products - a i.) zinc concentrate and a ii.) copper/cobalt concentrate which is what happens at Golden Grove.
Looking at drill results, it would appear at best, unless further drilling goes otherwise and back to the Golden Grove theory, that they will be able to produce only one product IMO at best, been a zinc concentrate with cobalt/copper credits assuming get enough of a resource to do that and that is the question here as need more resource IMO before we can yabber viability or therwise. The drilling hasn't been kind so still need to prove up reserves and hopefully hit a sweet spot to get a decent resource into the measured and indiacted category of a JORC code as inferred resources are not what you base mining decisions on.
Embedded here is some of my previous posts on Manindi - a running log where each post has other embedded posts and it takes you all ethe way back to how I have been viewing the project (and then changing views along the way) as drill results come in - some selective posts below which I can remember and found again.
From Jan 2017: Post #:
21834329
From Feb 2017
ost #:
22954244 and Post #: 22954283
From June 2017
ost #:
25208094
From July 2017: Post #:
26057664 and Post #: 26076255
From November 2017
ost #:
28631055 and Post #: 28631370
My personal view is they need to do some more drilling to conclusively either rule it in or out. I am hopeful they will hit a sweet spot that makes all the exploration work around that area in relation to zinc worthwhile, but need to find more resource (and hopefully with cobalt/copper recoverable credits). IMO IMO IMO
Manindi lithium
My initial views were in these posts:
April 2018: Post #:
32517166
Mid 2018: Post #:
34357809
Looking at the latest results they are ok but I wouldn't say great on the lithium front. Just don't have depth and width by the looks of it from what we can see from the recent drilling and it is lepidolite - refer 18 April 2018 post above.
However the tantulum readings are very good, and if you look at PLS for example their tantalite (similar to tantulum) in their spodumene development (and their spod grades 1.26% btw) grades only 132ppm Ta2O5, but obviously they have a lot of spod and the tantalite their acts as a credit). What we have here is good readings of tantulum, actually very good readings compared toPLS but not enough lithium. So the question is do you do more drilling to see if you have a greater lithium ore body or greater tantulum orebody.
Looking at tantulum, and looking at the following link essentially companies are reporting tantulum around the 0.03% mark (divide our ppm by 10000 to get to a % grade and it is in some places in the ball park here). So yes if drilling finds a slightly better grade of tantulum or comparable and it remains a near surface deposit it is a possibility as a standalone tantulum development but more drilling would be required in any event to either confirm viability of a lithium/tantulum operation or standalone tantulum operation. In terms of MLS and it is only a gut feel need tantulum and something else IMO to make it viable IMO IMO (niobium for example if it is not lithium) IMO IMO IMO. refer links below on tantulum and what else it comes with
https://minerals.usgs.gov/minerals/pubs/commodity/niobium/myb1-2011-niobi.pdf
http://www.australianminesatlas.gov.au/aimr/commodity/tantalum.html
http://www.ga.gov.au/data-pubs/data-and-publications-search/publications/aimr/tantalum
Sherlock Bay
This is a wild card IMO given what is going on in that area with other plays in gold especially - Post #:
30620422
Lac La Corne Lithium Project
My view back in 2017 was this: Post #:
29169683
Lac du Marcheur Cobalt Project
This project is a wildcard and not sure what work MLS will do here. Based on our recent quarterly it states the following:
"
According to the Ministère de l'Énergie et des Ressources Naturelles ("MERNQ") database (http://sigeom.mines.gouv.qc.ca), these various local showings, with variable amounts of pyrrhotite, pentlandite and chalcopyrite mineralisation have returned assays of up to 2,500 ppm (0.25%) cobalt, 1.11% copper, 1.23% nickel and 12.7 g/t silver in surface grab and trench samples associated with **bros, **broic anorthosites and quartzites"
Conclusion IMO IMO IMO:
I personally feel MLS should focus on the graphite project, however, it might be worthwhile doing a little more work on the zinc/cobalt/copper project at Manindi.
In terms of the lithium project at Manindi, the key I think is the tantulum but viability would appear to require the extraction of another mineral, unless grades become higher (noting tantulum is generally a byproduct of something else in a production process). As a standalone project not sure of viability, but obviously will depend on depth and width of deposit because the grades are ok - also refer here for some data on operating tantulum projects and grades
http://www.globemm.com/Commodities/Tantalum.aspx#.W1h09LgRXIU
All written with VB in hand and now in need of anther VB.
the above are IMO and opinions can change as drilling results come in. Anyway, I'll post again when we get some more results and all the best to holders.
All IMO IMO IMO IMO
