1.Aurox (AXO) calculated their Vanadium using 0.6% lower cut off grade. PMA are going to mine ore with average grade BELOW Aurox's waste!
2. PMA will never mine iron. They are way too far from a port and grades would necessitate very expensive beneficiation.
AXO will have a new port 25km away. In the meantime they will use Port Hedland <100km away. Their iron grades are nearly DOUBLE those of PMA. Many assays exceed 50% Fe ore.
3. Titanium bearing Fe ore can only be utilized by a few specialized steel makers. AXO already has a deal with and end user.
PMA has a deal for Vanadium with a holding house that it appears has never before traded Vanadium. Who would buy any Titaniferrous iron concentrate from PMA after the cost of 300km transport to the nearest port?
Aurox is ony 25km from the new port.
4. Titanium sales?? Most of the titanium is locked up in solid solution with the magnetite- high values are a PENALTY for steel production.
A small amount of Titanium concentrate may be produced from the non-magnetic tailings, but given the tonnages to be mined by PMA it would probably not be an economic exercise.
AXO has taken the best route: it is going to sell substantial amounts of iron ore and would have sufficient material to warrant titanium extraction. Also AXO will be producing Vanadium via the steel production in China = LOW RISK, HIGH PROFIT. LOW CAPEX.
I WOULD BE DUMPING PMA AND BUYING AXO - They are CHEAP in comparison! They have huge upside and LOW RISK.
PMA
precious metals australia limited
