Ton Monday

There were a lot of posts about ton over the weekend. These 2 from Tcb007 got my attention and IMO worth a reprint for those who have a life outside of HC.

Nicanda Hill will be 5 times bigger than SYR's deposit, TON's overall drilling assay results at 6.0% TGC cutoff have averaged 10.24% TGC & initial analytical results returned vanadium grade of 0.13%V - equivalent to 0.23% V2O5. SYR's JORC Inferred Resource of 1.15 billion tonnes at 10.2% TGC (5% cut off) and 0.23% V2O5. Some very striking similaries between neighbours. Yes, SYR have impressive grades but TON have only scratched the surface at Nicanda Hill. SYR's market cap circa 760m v TON 100m. Only a matter of time before the gap closes.

SYR will be the cheapest graphite producer in the world & TON will most likely match them. The key findings of SYR's June 2013 Scoping Study report are summarised below, based upon a conceptual mining and processing operation of 1,200,000 tonnes of ore per annum. Estimated initial capital cost of US$91.6 million which includes contingencies Estimated average mine gate cost of production US$101.58 per tonne Free on Board cost (FOB) Port of Pemba estimated at an average of US$198.01 per tonne Peak development cost funding requirement of US$69 million Payback period within 6 months of commission