Hi Semi I guess we should discuss the positives even though we get spammed...
Management from the out set,set out to mitigate start up risk. This was achieved by a strict set of criteria.
- Locate a high grade resource close to suface
- Resource from surface @ 23.6 % TGC and also tested in labs at >36 % TGC
- Established infrastructure,including port access,water,road ways
- 200 km of sealed road and short all weather road to mining license area
- Resource with life of mine at 16% TGC
- ROM @ $292 per ton High margin curve at modest $1000 per ton
- From mine to Ship $60 out sourced contract
- Low start up capex at 29.6 million
- Out sourced contracts for camp facilities work shop ect lower capex
- Sensible start up at 40,000 TPA and grow into known markets
- High basket price at $1588 modeled at ten year average lows
- High cut off grade at 8% TGC
So much more to discuss but a high grade resource can abstain a higher cut off grade reduce necessary thru puts and reduce start up capex. Its a very robust project with ...
Now Factor
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DFS was modeled at 1000 TPA. This photo taken from our engineering partner suggest the plant is to be built at 3000 TPD. Interestingly enough Trevor Benson confirms each current off take partner wants 100% of 40,000 TPA.
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I believe management will be prudent and offer a buffer on start up to mitigate risk. Currently only 30,000 TPA from MOU but expect this to change to the upside once the mining license is issued. Lots of events from RAP compensation off take agreement plant news should be released after the mining license is issued.
Croc
(20min delay)