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Thoughts on PIO, page-4

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tallplumber

5,201 Posts.

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15/10/18

16:15

Post #: 36128759
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Originally posted by w27 ↑

There are a number of expected reports we are awaiting:

1. The price of our pollucite.
2. Results of drilling at Peg 8 South.
3. Promised revised resource calculations for pollucite at Sinclair after additional drill intersections.
4. Results of metallurgical test work on laterite cobalt ores at Blair Dome, by Strategic Metallutgy.
5. Exploration target for cobalt ores at Blair Dome.
6. Were told s couple of years ago that there was a warehouse full of drill cores from nickel and gold exploration on Pioneer Dome. None of this had been looked at in relation to LCT mineral deposits. We wee told that it would be. We have heard nothing in two years.
7. The mine approval was for a mine approx 500 metres long. The existing proposed workings are only about 130 metres long. We have no explanation for this but it cannot be an error. PIO know, or have good reason to believe, something about the Sinclair deposit which they have not revealed.
I suspect we won't get any information on the price to be paid for our pollucite till the first payment is made.
It is not difficult to come up with a pretty reasonable calculation of the expected price of the pollucite.
As far as I can find out, 80% caesium brine sells for about A$76,000 a tonne. You can do your own Google search. Sodium formate or potassium formate sell for about A$500 a tonne. These metals are in the same column in the periodic table so are very similar chemically. Since sodium and potassium are above caesium in the periodic table, they should be more reactive than caesium so more difficult to work with than caesium. Formic acid sells for less than $500 a tonne. So almost all the value of caesium formate is in the caesium atom. Given the rarity and constraint on supply of caesium and the demonstrated anxiety of Cabot to secure a supply, and the stated "other parties" in the negotiation, we should be able to capture at least 75% of the value of the caesium formate. I do not accept that the management of this Company are incompetent in negotiation.
It is a simple matter to calculate that it takes 3.75 tonnes of pollucite at 17% Cs2O to make one tonne of 80% caesium formate brine, from the chemical formula and atomic weights. A simple calculation from these figures gives a value of our pollucite of about A$15,000 a tonne.
We already have a Jorc resource of 10,000 tonnes and we know that there are further penetrations below the JORC resource. There has been some discussion on this forum as to whether the lower penetrations are separate lenses or are ""shoots" from the upper lens. This is irrelevant. We know there is more and the best guess I can make is a total of 20,000 tonnes.
Then we have the mysterious case of Peg 8 South for which we await drill information. I don't think we will see that in the near future if at all. The only information released is two comments from Mr. Crook in which he comments that the geology is similar to Sinclair and that it is a "Tanco like deposit". Make of that what you will, but if there is not a substantial deposit of pollucite the comments are close to false and misleading information. I say another 20,000 tonnes. That gives 40,000 tonnes at A$15,000, When I went to school that came to A$600M

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Great post W27
What a shame the company is leaving us SHAREHOLDERS at the point where we have to speculate ...but i do like your sums

PIO Price at posting: 1.9¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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