Talk the Torque

Finally had the chance to listen to the webinar again & the more I listen, the more I like.

My back of envelope calculation is that according to the MRE there’s about USD20Bn (˜AUD30Bn, e=0.65) of contained metal.

Given the ~A$0.07 per tonne cost of discovery per tonne of resource, that gives a total spend of ˜AUD10.36m to discover ˜AUD30Bn of contained metal (a little less than the estimate of @benheron1 but what I believe will be almost a rounding error by the time all is said & done at Dante). This equates to an almost 2,900% return for every dollar spent on exploration to metal discovery.

I don’t know whether this is a legitimate way to discuss these matters, but I see no reason why not.

Thomas stated that given the amount of work they’ve already done on all fronts, he expects this cost of discovery to reduce substantially. Similarly – and Thomas didn’t state this; I suspect that updating the MRE in future will be quick & easy. I suspect that Ken Lomberg won’t have to make a site visit every time further assays are received. Consequently, he can enter the new data into his model, hit Enter, and voila!

What Thomas did state though is that they should be able to grow the resource very quickly as it won’t require close spaced drilling to do so. He used the example of 100m step outs that can add significant tonnage to the existing resource.

I spoke to a geo mate & asked him the question as to how much a 100m step out could add to the resource. He reckoned that, back of envelope, it could add about 100mt of resource. If his is correct, and I have no reason to doubt him, I reckon that Reef 1 alone could contain 500mt – and Dante is infested with reefs, outcropping & under shallow cover.

Could the total endowment of TM1’s tenure contain 20x of Reef 1 i.e. 10Bn tonnes of resource? It’s early days, but to quote Thomas, “…we see a clear path to rapid, low-cost resource growth and potentialfurther discoveries across this vast, underexplored province.”

Now just imagine that Reef 1 ends up at 500mt @ 1.38% CuEq at ~A$0.04 per tonne cost of discovery per tonne of resource. This would mean we’re looking at ˜$100Bn of contained metal at a $20m cost, or a 5,000% return for every dollar spent on exploration to metal discovery.

Talk about torque!

Nebo-Babel contains 390mt @ .30% Cu, .33% Ni, .23g/t PGE3. So I asked AI (Claude.ai) the following question: Please convert .30% Cu, .33% Ni & .23g/t PGE3 to CuEq. Its answer: 1.36%CuEq. Almost the exact same as at Dante.

To the best of my understanding, NB suffers from what is (at least currently) a poor mix of metals, with the nickel being a big negative. Dantedoes not suffer from this issue. And if my assumption is correct, Reef 1 in & of itself will have more tonnage that NB, and with a much better mix of metals.

This brings me to what I believe is the biggest problem with the Dante story: it’s scope is too damn big for the average human mind to comprehend.

Try imagining a reef that runs for 16km (perhaps even more). Yes, get in your car & drive 16km in a straight line on a highway. Or think of a suburb/city 16km from where you live & try to imagine a continuous reef between those 2 points. Then imagine multiple reefs of this length. It’s difficult to comprehend; even more so without being on the land.

Now add to this abundance the distinct possibility that mineralisation of this kind i.e. Bushveld Complex, can run to depths of 5km. Guess what I’m trying to say is that TM1 has barely scratched the surface at Dante.

I also think the market is having trouble comprehending this mix of metals given that it seems to be unique not only locally but globally.

However, I have no doubt that in the coming days the significance of the maiden MRE report will raise some eyebrows among the geos in some of the biggest mining companies in the world – and they will understand it.

And this time, whoever wants to play will have to buy on market; as TM1 is cashed up & has strategic investors with the vision & wherewithal to take it to the Promised Land.

As I’ve stated in previous posts; IMHO the only impediment to TM1 reaching a billion dollar plus MC will be because it’s acquired prior.