mt carbine: outlook and upside

Ok, I've managed to dig up some summary points from the
presentation at the Gold Coast Resource Showcase.
This is second hand info, so please check the III
announcements for actual data "from the horses mouth".

I don't know what's going on with negotiations atm. I personally doubt that III will let this go too cheaply.
some financial assumptions (second hand info)were presented as follows:

Mount Carbine

Tonnage 15MT (range 14-16MT) mining 2MT/year (2MT pre-sorted at 80% rejection of waste, to give 400KT/year ORE to process plant)

Grade 0.2% WO3 (range 0.2-0.22% WO3)

Recovery 72% (range 67-75%)

Price US$200 (range $150-$235)per metric tonne unit (10kg)

Exchange rate 0.75 (range 0.7-0.8) for AU$/t

All-up cost AU$22.70/tonne
includes mining, process, rehab, admin & royalties)

EBITDA AU$250M (range $50-$500M)

Cost per mtu US$120 (range $100-$130) unit cost of production.

NPV AU$50M (revised to current price range)

Note: this is second hand info, we should get an actual preso from III soon I hope.

I'm going to have to "sin-bin" myself from the numbers game. I think that's better left for others.

On the Outlook and upside potential, I'll offer the
following suggestions:

Mt Carbine is a world class Mine waiting to happen (again)

The resource base has never been adequately investigated
IMHO. By this I mean, the Grade has not been proven to be as low as reported.
The Mineralisation style has been described as "nuggety", and this can just as easily cause an UNDERESTIMATION of the grade as an overestimation. I suspect a very good chance this is the case at Mt Carbine, because the "old" operations ran at such poor recoveries (lost up to 50% of their metal) but still maintained a profitable head grade.
(until the big C decided to spread it 'round)
I am very confident III will upgrade the resource by both tonnes and grade in due course.

The place has not seen much drilling at all, in comparison to what one might expect with modern mining.

Those holes RAU drilled interest me, because:
they're new (and presumably open and accessible)
they're already drilled (DD is expensive)
They are still a great source of data
(they CAN be 'tooled' with sonar etc. In this way, the downhole information is still available to III)
assays might not be on the cards for these holes (no core) but a downhole televiewer will "see" this type of mineralisation easily - and for a fraction of the cost of the drilling.
If I was III, i'd be checking these holes out (unless RAU cemented them of course)
It might be a good way to get a bit of "recon" on the eventual infill drilling necessary.

Of course metal prices are the key to success.
Timing is everything in mining.
look at the Tungsten (or any metal chart for that matter)
and we see the trends. Bring a show like this "on-line" at the right time of the cycle and reap the benefits.

I'm not an expert on demand prediction etc....
but World Class Deposits like these aren't in oversupply.

Not many big mines are this underexplored "near to mine"
like this one is IMHO.