GSJBW notes OZL's lack of expertise in this type of under ground...

GSJBW notes OZL's lack of expertise in this type of under ground block mining that is going to be problematic as a best case scenario. If BHP's business case for Olympic Dam isn't clear cut you can start to understand why they let this impressive IGV resource go for what they did IMO.

To explain this point further.

CDU's capex is a max of $200M to produce a min of 30ktpa upto 120ktpa (initial years). The purchase price of Carrapateena is low because it's capex is likely to be well north of $2B. Given Prominent Hill's blow-outs I suggest north of $3B by the time they get to commission stage.

The numbers look something like this which show OZL could in fact be paying over the odds in terms of capex:

CDU Capex Rocklands $200M
Prodn p.a 30Ktpa to 120Ktpa
Capex/t p.a. $6667 to $1167

OZL capex Carrapateena $2B - $3B
Required production to match $6667 = 300ktpa
Required production to match $6667 = 1.2mtpa

Anyone else sceptical they can achieve these numbers from block mining at massive depth and no track record???????

Thanks again for the opportunity Zzeter to confirm in my mind why Rockland is going to be a low cost open cut mining operation near term.