Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I'm quite surprised that with the confirmation/news of us having shifted a significant debt (about 10% of present Mcap), from the balance sheet,that there has not been a more positive movement in the sp. Oh well ! it will happen.
:)
I think I recognise your handwriting Double :-))
Correct Fulmar. His figures have been and will be copied and pasted many more times i'm sure. They still read very well though
The CE oxide discovery we’ve made this year is very modest in size. It’ll be less than 5m tonnes ore. In most circumstances it would be pretty worthless, no ones going to buy the asset and build a mine around that size deposit. Sentinel mine for example would process 5m tonnes of ore in about 5weeks!
The CE oxide deposit whilst small is high grade. ARCM are in the great position of being able to use the built small scale plant to monetize that. Lots of juniors have a larger resource, but no way to take advantage of it. Arcm does and that matters significantly.
Information on the plant is limited at the moment. What we do know is
1) it is expected to be able to process 10,000 tonnes or ore a month. This is mainly limited by the residence time in the leach tank (how long is spends in acid). This was expected to be 6hours, however it might be possible to decrease that to 2hours therefore trebling plant processing ability to 30,000 tonnes per month. This would probably involve some additional capex
2) NVS previously commented when discussing kaliba deposit not being suitable that 1% grade is required to make running the plant worth while.
3) Grades at CE high grade zone can be seen on assay RNS. Without doing a full exercise working out average I’d say we’re about 1.5% average.
4) Ways of concentrating the ore are being reviewed. There are a number of ways of doing this - simple jig system through to dense media separation and X-ray scanning and sorting of Ore into higher and lower grade piles
5) Smelters in Zambia want Zambian ore to process. They are very short. They used to import ore from DRC, but now there are taxes on imported ore making this less attractive.
6) smelters will often advance pay small producers to upgrade their plant as part of any offtake agreement
7) the company is producing an economic report on the plant. This will review all aspects above regarding whether it’s worth the additional capex to increase throughout to 30k tonnes per month and what type of equipment to use (again more capex) to concentrate the ore more. This review will be like a mini scoping study/BFS and will be worked on during rainy season
From NVS comment grade needs to be 1% to be worth while you can probably take that to mean anything over 1% would be profitable with anything below just covering costs.
Base case processing 10k ore per month at 1.5% grade, but binning if 1% to cover costs and keeping the 0.5% as profit would get you profit of 50tonnes copper per month. Say we sell at $5000 per tonne that’s $250k profit per month.
If you trebled production rate $750k per month.
Where it gets more interesting is speculation on how high you could concentrate the ore before being fed into plant.
For example if you could get it to 2% grade then instead of 0.5% grade being profit you’d be 1% - twice as high.
A copper oxide producer that went under with debts called cradle arc did a test using dense media separation.
It increases the grade of ore going into their plant by 80% - that would get 1.5% grade to 2.7%. Interesting the guy that headed up cradle arc was the operations manager at Lionore (where Don Bailey was Chairman).
I played with some figures and if absolutely everything went out way that plant could produce $3m per month profit. I don’t expect that at all, however the plant has the potential to be very very important and for the mini scoping study/BFS to totally surprise the market!!
The other thing the economic study on the plant could be produced for is to help value where the company is at the moment. This would then make it easier to negotiate a major buying into Arcm at company level (become Arcm shareholders)
Correct
An extremely diligent poster on this site,previously posted scenarios to Kalaba production figures,processing Ch E. ore. It has been copied before so he won't mind me reminding people "Without knowing costs for plant makes decent forecasts hard.However we know plant needs 1% to be economical so if to play safe you use 1% ore as the cost and anything higher as profit it’s possible to run some figures.Processing 10k tonne ore per month at 1.5% grade, but only using the 0.5% as profit gives you 50 tonnes say $250k per month profit.
If at 2% grade you can double that.Then if later they improve the plant to 30k tonne per month a further 200% gain. Possible to model $1.5m profit per month.
Obviously still more tests and question on reliability to run well enough to process 10k per month, but numbers show it has potential to be quite handy
very nice indeed if so, thatll be enough to self fund production. Plant already up and running so capex will be minimal too
The important bit for me is " Separately, the first payment by Golden Square to Casa in respect of operating expenses has been made this week."
SP Angel suggested £10M a year (I think) potential revenue from processing CE at Kalaba.
I wonder is cashflows from Kalaba can be used to minimise dilution going forward too!