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I think it's worth listening to Dennis Edmonds again, the new Director with responsibility for the Diamond and HMS projects. It would have been reasonable to think there would be no HMS product and sales activity unless and until KZG proceed idc with the WHM acquisition on gaining a mining licence and certain other conditions being satisfied re the Walviskop beach project e.g. the building of a processing plant which would take 18 months.
Clearly that is not the case! HMS will be a substantial by-product of the diamond operation, itself due to generate profits by the end of the year, thereafter expected to quickly rise to the order of $80-$140k p/mth. However, it seems all that's missing in order to also bring HMS sales into this equation is a separate mining licence for HMS, also expected by the end of the year, covid permitting.
Ahead of the licence, the HMS material will be stockpiled and apparently can be bagged and sold "almost immediately" on the licence being granted, thereafter being said to be the "main contributor" to the operation. Interesting, given the $80-$140k p/mth forecast for diamonds alone.
Thereafter the arrival of the processing plant could apparently be expected to boost HMS figures by 600%, also by then in conjunction with the WHM licence. Looking forward to that full note Align mentioned but notable that they've loaded up with even more in the meantime!
http://www.alignresearch.co.uk/kazera-global/zak-mir-interviews-dennis-edmonds-of-kazera-global/
Source KZG website: "It is expected to be producing profits from diamonds before the end of 2020..."
Diamond mine to restart within 12 month timeline which will fund heavy mineral production expected to have a revenue of 600k monthly. Revenue to be used to further progress on TVM. As per RNS
Mine to start within a 12 month timeline. Acquisition cost was 600k payable by shares to Richard Jennings. Already completed and issued as per 17th June share issue onto market. End of year is a real possibility for potential income as well as completion of further drilling to realise TVM resource. As per RNS.
The mine isn't producing yet. $600,000 required yet to restart production.
MM’s moving this up slowly but surely. Are they realising the value with our new holder ‘Align Research’, as well as the potential income from new acquisitions. Would very much like to see a MCap of 13m plus giving a share price of 2p plus or thereabouts. Been a long time coming, but not unexpected. 1p initially near term but much more as news starts to flow. JORC expected soon as well as monthly income from new assets.
Re DBM and near-term diamond project, the RNS reveals an inferred mineral resource of 208,000cts @ 6 cts/100 sq mtrs, which by my calcs implies a DBM licence area of 3,466,666 sq mtrs or 346.66 hectares or around 480 average football pitches. Sounds big enough for starters.
It must be noted that the 5 hectares mining site relates only to the planning application for the WHM Walviskop Heavy Sands project, which is a likely but not yet assured acquisition by KZG. If approved, the initial intended mine life for the project is 5 years but sea-replenishment may extend this mine life.
However, since, if acquired in due course by KZG, this project is set to be partly funded by the income from DBM's near-term diamond operation, I'm not sure why the discussion is not more about the latter than the former.
To put things in context, the relevant section on KZG's website shows a map of alluvial diamond mining areas numbered 1A to 4B as the intended areas for DBM's near-term alluvial diamond mining operation. By comparison, WHM's heavy metal sands mining application relates to the Walviskop 5ha single-beach project located in a small region of the bottom of Area 2A alone.
Not could but WILL rocket
The initial licence area is, I believe, 5 hectares, which is more than enough to keep them busy for a few yards! Even more exciting however I understand they are applying for multiples of this as new exploration licence areas. of course DYOR but watch this space these things could rocket.
I'm sure the size of "a mining permit" in SA is as infinitely variable as could be expected anywhere else. The 5 hectares you refer to relates only to the forward prospect of KZG acquiring WHM currently applying for a HMS mining permit north of Port Nolloth. It looks likely to be granted and I think the point here is not the size of the permit because of the nature of near-shore mining. In typical land based mining, once a resource is mined the resource is depleted whereas the concept for WHM's operation is that the mineral resource will be constantly replenished by the natural actions of the sea in that location.
None of this has any impact on the already confirmed acquisition by KZG of DBM and the plan to mine for diamonds in an established diamond mining area along a stretch of coast south of the mouth of the Orange River, "expected to be producing profits from diamonds before the end of 2020." (KZG website extract). However, the similarity of regular replenishment of the diamond resource by the sea is a potentially a very interesting and lucrative one!
Has anyone checked how big a mining permit is in South Africa. To my knowledge It's only 5 hectares is that enough for a heavy mineral sands project.
So interesting that the seller of DBM seemingly can't buy enough of the buyer!
Nice to see some consistent buying.
Well we can all dream I suppose but let`s get some decent news on revenue streams, pipeline etc before we all go nuts.
Definitely a positive sign though.
TP
They certainly know what’s around the corner. Remember this moved before from 2p to 14p in few months years back
...and, my word, now buying even more!
The section on HMS on the Kazera website has some nuggets not mentioned in the Align article i.e. the $600k monthly gross revenue from HMS:
https://kazeraglobal.com/investments/diamond-and-heavy-mineral-sands-project/
have written a positive note. Further writings to follow.
http://www.alignresearch.co.uk/kazera-global/kazera-global-takes-full-control-of-the-tantalite-valley-mine/