why is bmn so cheap, page-45

guys guys please.

why is this posted in teh EXT thread anyway? put it in the BMN thread.

WG has never run or developed a U mine. he is a stock picker who claims to be independant yet has had interests and directorships in U compnaies his company covers in a research capacity.

there are significant contradictions from a technical prespective in his assertations.

you are all forgetting the two big cost drivers in these alaskite projects that actually effect the VALUE of GRADE.

Strip ratio and acid consumption.

Etango has a lot of very shallow material fellas.

Something to ponder:

for expample lets say BMN mines a head grade of 300ppm (which it will for many years) at a strip ratio of 2.5 - 1. (Waste to Ore ratio)

lets say that because of depth to mineralisation EXT mines 500ppm head grade at a strip ratio of 3.5 to 1.

well the result fells is that (because waste and ore cost the same to mine in this case) is that the cost of the head grade would reduce its implied grade by 28% to 360ppm....on a tonne for tonne basis.

why do you think RS scoping study op costs were STILL above $21/lb! surely if you believe in linear extrapolation they op costs would be $15/lb or lower!

i am not in anyway implying these numbers are completely accurate and i LOVE RS as a deposit and EXT as a company....but i am trying to demonstrate the importance of STRIP RATIO that WG has completely ignored.

ACID is also a driver and you need to watch the Kg/t useages....it varies a lot in this region from 30kg/t at Rossing to sub 20Kg/t at Etango.

As for those comparisons

Olympic Dam begins at 1000m depth ($30Bn expansion capex), Macarthur River and Cigar Lake (under water) at over 1km.

if you dont believe me consider a well understood example you may be more familliar with...

for example WA open cut gold mines can and do treat 1.5gpt ore. UG gold mines typically require a head grade in excess of 6 - 7 gpt.

So the moral is dont generalise and dont listen to one opinion.

DYOR and good luck all.