Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Good old Koka Kola -
"Exploration Update - Kola
Eurasia is pleased to announce the results of its 2009 drilling and exploration programme, comprising a comprehensive analysis and interpretation of its Monchetundra (36.2km2) and Volchetundra (210km2) platinum group metals (PGM) projects, located on the Kola Peninsula in north-west Russia. Both licences are held in Joint Venture with Anglo Platinum as a 40% shareholder"
Anglo funded all of the exploration at the time and then left a few years later due to poor Palladium compared to Platinum pricing at the time. palladium being circa $600 an ounce in 2016.
Platinum Prices - Historical Annual Data
Year Average Closing Price Year Open
2016 $988.90-------------------- $891.10
2015 $1,050.61--------------- $1,193.00
2014 $1,383.62----------------- $1,388.00
Anglo simply made the correct financial decision for themselves at the time, leaving Eurasia with all of the exploration data and having to play the waiting game for certain technology to drive the demand for the metals at Monchegorsk. Along came the green industrial revolution and everything else is history!
GLA
The old license in Anglo JV days was 36.2km2. They've simply worked their way back to having control over that historical area via MT + Flanks and the Rosgeo JV.
MT + Flanks is only approx 8km2, Rosgeo JV cover the rest of the old area!
"Monchetundra
To date, 16,121m of drilling have been completed on the licence, with most of the intersections from the last phases of drilling having been previously announced in early 2009 as a table of results, without accompanying geological comment. Subsequent work during 2009 focused on an interpreted ore structure in the Loipishnyun sub-area, stemming from recent drilling, but also included several previously unreported intersections"
You need to go right back to 2010 RNS and read from there as there has been further drilling and exploration campaigns on top of the 16,121m. All of the way to Absolute Precision with their fancy gear and Rosgeo more recently.
The area is thoroughly explored, WAI are gathering all of the data and creating the relevant JORC, DFS and NPV from the data in place and any other little bits that they advise need to be done. Rosgeo being an exploration company will cover any other little bits prior to the entire district being done.
GLA
Because NKT, NYUD and Poaz have previously been operated and have open pits on them already, arriving at DFS for those assets is a lot quicker than other ones that may require further exploration.
Between ex operators like Norilsk, state exploration and the exploration done by Eurasia themselves during Anglo JV days, the entire district has had an abundance of exploration data for a very long time tbh, it all simply needed to be put together and the relevant JORC, DFS and NPV's done on them.
GLA
It all starts with block modelling, pit optimisations etc once they have a good 2D or 3D map of the resource from various exploration techniques.
It all just simply follows a logical process.
1. They rock up to some ground where historical data suggests there is the potential of a relevant ore body.
2. They explore via drilling, trench work etc to get a vague idea of ore body and do an initial not very accurate feasibility study.
3. Further exploration work and more technical geological exploration is done, including infill drilling etc. To gain a more accurate resource level and shape picture.
4. Block modelling and open pit designs are done on explored ore body. Taking in to account the ore grades right down to whatever is financially profitable to extract at the current and future forecast metal pricing.
5. DFS is done to work out how the ore will be extracted in the most profitable and efficient way. JORC, NPV etc is all part of the process of arriving at the decision to proceed with the mine construction or not.
6. If the plan is to sell you sell at that stage and the buyer takes the construction risk. If not, you get financing or put in place relevant EPCF contracts like Eurasia have already done with Monchetundra via Sinosteel. Either for sale or to production is arrives at a turnkey situation which is ready to go straight in to production.
I'm not battling with you either lovelyboy.
What comes after block modelling and open pit optimisations is simply the process an asset heads to production, or, at least the right to the stage where they male the decision to develop to production or not, DFS.
GLA
Some excellent debates / info on here tonight. Thanks to LB, Mac and Caw.
The one positive thing was can take away from this chat is Konstantin knows the score in this region. He's potentially a good 'fish finder' . This is from around 12 months prior to his appointment.
"The geological data obtained for the entire period of the operations in Poaz field confirm its uniqueness in terms of the forecast resources of platinum and palladium, which, by preliminary estimates, amount to 336 tons of category P 2 far exceeding the initial expectations ", - emphasized Konstantin Firstov, the head of North-West PGO.
That report talks about 'the mountain range of Poas Monchegorsk ore field in Murmansk' . Also refers to East Vyruchaivench. All a bit vague but Mt Poaz [sic] is geographically actually closer to Nyud if you Google map it. So potentially split over 3 jv areas at least.
They uncovered an ore reef horizon of up to 8 m thickness with sulfide mineralization. The ore zone has been traced along the width for 1.5 km and for 500 m in the depth.
336 tons of Pt/Pd..Monsta Monsta.
Hope the units are correct ;)
ATB LB
Toon1966, more factual than you and your posting history lol. Love your facts lmao, you ret*rd!!!
Hi mac. For reference. Approval of West Kytlim DFS was Rns'd 21st Jan 2021. Long after production started. Tipyl license and ÂŁ10m placing for scale up gained before Aug 2020. Loads of other activities before... too many to list.
https://www.lse.co.uk/rns/EUA/west-kytlim-dfs-approved-b1c4odl9kzqiw7u.html
You've got a good point about the block models on 6 of the 9 targets. I'd forgotten that snippet. This will help them assess which jv projects are most viable. Also no coincidence in my mind about the appointment Mr Firstov soon after JV deal was sealed. A handy geezer to have on the MT team as he already knows the area geologically from recent work with his previous employer North-West PGO (a subsidiary of RosGeo). Yeah like that wasn't planned.
https://rusgeology.ru/en/press/news/rosgeologiya-zavershila-burovye-raboty-po-poisku-metallov-platinovoy-gruppy-v-murmanskoy-oblasti/?sphrase_id=12468
Poaz on his resume. So snooping around in the grass near the Severonickel plant. Perhaps this is why Nyud and Poaz appear as placeholders in the NKT report.
As caw pointed out earlier (and I agree personally speaking) NKT, West Nittis, Loipishnune and potentially also Nuyd is a vast complex and more than enough to be getting started with. Given the map in the annual report I think this is the scope of the MT DFS. The interesting thing will be if there is any further details on the benefication plant also noted on the map.
The report highlights the JV as a pipeline of potential future projects. Or words to that effect. I still maintain that securing the 75% earn out is more than enough as a first step. This requires a joint eua/rosgeo intermediary Co to be set up for licensing. Plus a bit of cash. The rest of the activities can take as long as needed. Nuyd and Poaz could be held off until later. Nyud deal still needs ÂŁ2m spending on it according to the accounts.
I'm not battling with you mac - just putting forward an alternative view point. You however may be right. That will be a pleasant surprise to the upside.
ATB LB
And you rocked up July 2020 Folio? Hmmm
Since when has no licenses been a fact ? - back to school for you.
BTW that was Southern ....mind you think he's lost his compass.....
And you rock up in July knowing everything lol..
Without that DFS, they can't figure out what equipment they will need, therefore can't figure out the costs. If they can't figure that out then they can never figure out the tonnage extraction rate at X grade and therefore cashflow. Without those they can't tell if a project is economically viable, or, create an NPV on the asset as they will never have any idea about expense and income over a given mine lifetime.
If you arrive at the end of above you can never know whether to develop an asset or not! So, in summary, to arrive at a conclusion as to whether to develop an asset or not, DFS is required.
Now, we all know what has changed this year, something entirely out of the BOD and advisers hands, so, what do they do? An orderly exit out of Russian assets could be the route of choice right now for obvious reasons. Of course, we can never know anything for certain until things actually transpire, so, at this stage it's just my best educated guess due to the very clear slow down of RNS comms from the BOD this year since the conflict began.
If anyone has a different theory i'm all ears. UBS, Citic Merchant, DLA Piper etc are all still here, so, a large deal is still very much going down, that is something all genuine shareholders should be able to agree on at this stage.
As for Wolfie, i'm a Celtic Tiger, playing with you is like a cat playing with a wool ball, simply amusing and aimlessly fills in quite a bit of time as us real shareholders patiently wait for things to conclude!
Poodle pup would have perhaps been a better moniker for you tbh! In your small head rent free forever!
GLA
Wolfie, that obsession with all things Mac is coming out again.
It can't really be good for you.
Try to ignore what you can't control.!!
This thread seems to be exploring some good lines, who cares whether it's Mac or anyone else.
The content is interesting and informative for our own research.
Indeed CAW, a debate on what's possibly being sold is far better than what the ones with a negative agenda come with.
The easiest way to think about it is like this -
1) · Block Modelling and open pit contouring and optimisation complete for 6 of 9 Rosgeo JV projects. - Complete Sept 2021
2) Now, how do we divide that ore block in to a manageable extraction process over a given lifespan?
3) We need a DFS. The DFS figures out exactly how the ore will be removed from those optimised pits, what tonnage per year to extract and feed to the processing plant.
The only thing they could have been working on for those 6 in particular is the relevant DFS. Due to the time elapsed between then and November, you can assume the other 3 have had the optimised pit work analysed and are also heading to a relevant DFS stage.
GLA
Lol!
“I agree to disagree”
But I’m right and you’re wrong
Standard Mac
The good thing is Mac we are disagreeing on the amount being sold and not whether anything will be!
With the geopolitical situation selling just the 3 could be seen as maximising shareholder value as goal post have moved. As an example negotiated full price sale for the 3 and give them access to the other 7 JV projects for nothing - personally doesn’t seem a bad deal as Russia stands currently
GLA
Yes CAW they will care, they're shareholders themselves and are after maximum value.
Rosgeo JV has been in assessment stage for a very long time -
30 September 2021 -
"· Block Modelling and open pit contouring and optimisation complete for 6 of 9 Rosgeo JV projects."
That was 10 and a half months ago, that's a long time CAW. By November it will be 13 months, a lot can be done in that kind of time frame.
MT DFS, it's a simple recalculation, not very time consuming CAW -
"· Recalculation of MT and Flanks resources and pit outlines, reflecting metal price increase since Feasibility study of 2016."
I agree to disagree, but, the evidence speaks for itself i feel!
GLA
Will agree to disagree Mac as only the Bod truly know but IMO the hold up is MT DFS/Jorc as why buy NKT (Jorc complete) to leave the small area of MT for someone else.
Think MT DFS/Jorc will the allow MT, NKT and Nyud to be sold and then use the 20% of proceeds to continue to activate the other projects in JV. Just has to happen prior to 31st March next year.
Do you think the BOD will care if everything goes tits up after those 3 are sold and they get a conservative 50p dividend per share and make millions.
GLA
You've proven the point yourself, that was 6 months ago when the draft was given to Eurasia for review. WAI were confident that their work was complete on it back then to submit it to Eurasia. NKT only needed a PGM assessment and the open pit analysis done after the last RNS on that. Monchetundra is simply an adjustment on pit size to accommodate the lower grade ore which has now become financially viable to extract due to the metal price increases since 2016.
That leaves the vast majority of work over the last 6 months being on the other Rosgeo JV assets, they simply don't have anything else that they could be working on.
POAZ is an ex operating open pit mine, satellite imagery will show anyone that, so, again, the work on that one will be minimal as a previous DFS will have been done by the previous operator there.
30 September 2021 -
"· Block Modelling and open pit contouring and optimisation complete for 6 of 9 Rosgeo JV projects."
Rosgeo JV analysis isn't a new thing, you can potentially class their initial assessments as the feasibility stage prior to heading to the more thorough DFS and NPV stages that Wardell are here for. All looking to be complete in 2022!
GLA
"Wardell Armstrong International has presented a draft CPR under the JORC Code and the NPV model to Eurasia for review." - Indeed, they can review it for as long as they like CAW. NYUD was done a while ago, so, what have they been doing since? The rest of the Kola assets, looking to have them done in 2022 and long before the March 2023 timeframe arrives.
Due to the conflict we're looking at one transaction for the entire lot and Eurasia fully exiting their Monchegorsk position imho CAW. Hence quiet comms until it is all ready to be done!
GLA
Simply put, not one Rosgeo JV can be developed until all analysis is done. If it can't be developed what would the point of an asset license transfer be? None, this is why they are doing the analysis on the entire Kola position as per RNS.
To get to the stage of knowing which assets can and can't be developed you need DFS and NPV in place, it's why they're even doing the new one on Monchetundra itself, the original asset in the area, so that they 100% know the most economically viable way to take the assets to production, develop.
"the Group seeks to develop the options available at Monchetundra, the Monchetundra Flanks, NKT and projects within the Rosgeo agreement."
If they seek to develop those then they seek to do DFS and NPV on all of them, the assets can't be developed to production without such analysis taking place first. Either a company holds a license or it doesn't, the 75% and 100% thing was originally quoted indeed, but, without JORC, DFS, NPV and 100% ownership the assets can't be developed in any case. Eurasia will go straight to 100% ownership of all Rosgeo JV assets which they choose to develop after all of the correct analysis is done imho. Rosgeo is simply holding them until all of the analysis is done. That is of course if they're heading Eurasia's way at this stage, what if there is a buying consortium after the whole lot? The chances are that there is and things are now being done in a way where the licenses will go to the buyer on completion of the correct analysis and at a given price from the NPV aspect. A consortium involving the Chinese, which would be deemed a friendly entity by Russia and so sale permission would sail straight through.
Rosgeo is a state exploration company, the area can't be developed by them, so, the licenses have to transfer to an entity that can once the correct analysis is done.
The DFS is the only way to develop a mining asset to production.
GLA
Best thread in ages all.
LB & CAW I believe you have clearly stated the most likely scenario. But as mentioned ambiguity abound.....
June last year
https://polaris.brighterir.com/public/eurasia_mining_plc/news/rns/story/wkljkvx
The Company is pleased to announce that the first joint venture company, Monchegorskoe LLC, was created to hold the licence for the Nyud open pit PGM and battery metals deposit ("Nyud"). Eurasia's 100% subsidiary Yuksporskaya Mining Company / Yuksporskaya Gornaya Kompaniya ("YGK") has signed a notarised agreement with Rosgeo Group company pursuant to which YGK will become a 75% shareholder in Monchegorskoe LLC after the licence for Nyud is transferred from Rosgeo to Monchegorskoe LLC. Euraisa, through YGK, will also have a right to acquire Rosego's 25% shareholding in Monchegorskoe LLC upon the completion of a JORC Code compliant competent persons report on Nyud.
Feb this year
https://polaris.brighterir.com/public/eurasia_mining_plc/news/rns/story/w0mmn8x
"The table above includes the Nyud deposit for which Eurasia's subsidiary already has paid Rosgeo (as announced via RNS on 26 March 2021) and the license transfer thereof will be separately announced. In the meantime, Wardell Armstrong International has presented a draft CPR under the JORC Code and the NPV model to Eurasia for review. Nyud is a nickel dominant relaunch project, similar to NKT."
DFS still not officially complete so they can activate the licence transfer for a JV mine without a DFS or Jorc
GLA
Just to follow up Mac you quoted
"within the context of the Rosgeo agreement and as independent projects. Wardell Armstrong International have been appointed as chief mining consultants to manage the reporting process in some cases undertaking new resource calculations." - - - - - - - - -
If WAI are to manage the reporting process in some cases undertaking new resource calculations.....
How can they be doing a full DFS and JORC on everything? Just asking as it is clearly stated in an RNS that they are only undertaking new resource calculations in "some cases."
Facts ;-)