The thoughts of progressing underground have been driven by the age old mining practice of "mine the surface ore first to the limit of cutoff grade, the follow the ore underground if grades and metal prices permit."
Now the price of Moly has continued to rise since the release of THR's first NPV of cash flow estimate, earlier this year, and now we are told that the ore grades from the last round of drilling are "too good to be true, unless double checked first".
So if we start with that first valuation, we KNOW that we cannot have gone backwards in value, and if we look at the range of higher grades that have been published so , and do our forward estimates on these as a guide, we find that my last estimates of a "50% increase in metal content from recent drilling " are way, way too low.
Underground mining ,when it occurs, will be more costly that the first years of open cut, but the percentage increase in ore grades seem likely to be way in excess of the percentage increase in underground costs per tonne. In short, if I released to you what I see in front of me you would be VERY pleased with what the company is attempting to tell us at this early stage. C
THR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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