@Mutley8 ..." Why does WFE need a rough estimate (+/-30% or +/-10%) when they aren’t digging a hole in the ground of an estimated ore resource based on an opinion based on a few drill holes."
It has nothing to do with drill holes, nor mining. Whether a company gets their ore from their own mine or buys it in is irrelevant to an overall feasibility.
There is a cost, a price per tonne of ore to the ROM pad of the processing plant. Then there is a cost of processing, then recovery rates, dependent on the metallurgy, then transport etc.
You are correct, we bandied around all sorts of numbers last year, but this is not about the numbers any of us think it will be, it is about the numbers that can be shown in a prospectus to raise funds.
As the ore will come from 5 different suppliers, the ore in combination needs to be tested for process and recovery.
In a prospectus, the company cannot just show the numbers they believe will work out, it has to come from Independent Experts, they are ASIC and ASX rules to protect investors. This is known to the BOD.
About the actual numbers in feasibility studies, you're correct, most companies numbers are way off the prior studies, but you have to have something to go on in the first place. A company saying 'we think xyz' are the correct numbers just doesn't cut it.
The METS report states nothing about the viability of the project, only the valuation of the plant. So what about the plant valuation, it is meaningless by itself. It tells nothing about how profitable it will be processing the ore the company will have access to.
How do you know as a shareholder that this project is viable if there is not the information to go on??
WFE Price at posting:
2.4¢ Sentiment: Sell Disclosure: Not Held
