Further to my previous post, we should expect a resource upgrade for Highland Plains (HP) after this year's round of drilling. No reason why we shouldn't have a measured JORC by year's end.
Assuming a mine life of 15 years from HP at 3mt/pa, work on Alroy, Buchanan Dam and Alexandria should be at an advanced stage prior to resource depletion at HP.
If POZ suffers the same fate as MAK, in that they (POZ) have insufficient water at their other three projects, they could start trucking the phosphate rock to HP years before the end of its mine life. Alternatively, if sufficient water is available, they could relocate the beneficiation plant etc and truck the beneficiated product to HP for slurry transport to port.
Another option is to extend the slurry pipeline to the other three projects (aprox 110km). I'm against this option if there's insufficient water to beneficiate + slurry. If there is insufficient water to beneficiate, but enough water for the slurry, it's still impractical to slurry since unbeneficiated rock phosphate contains too much silica which would be way too abrasive on the inner lining of the slurry pipeline.
Anyways, food for thought!!!
POZ Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
