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Keep scrolling it's way further down
Analytical
Could you please show where the application has been approved. All I can see is deferred. Am I missing something?
Ahh, thought it GLR was expecting an update. Cheers
From memory, they discuss their visit to Luansobe, Shinganda (nice copper cores) and Silverking at the intorduction. Then near the end say they will do a full update next week to include NW Zambia. It is a paid for presentation so the usual caveats apply, but should be worth a listen.
Flipper, at what point do they say full update next week? Save me listening to the whole thing. Cheers
Approved in the MLC minutes - https://www.mmmd.gov.zm/?p=2794
Approved in the Cadastre for 10 years. https://portals.landfolio.com/zambia/
License 34543-HQ-SML
And copper price looks great: Https://www.livecharts.co.uk/MarketCharts/copper.php
Tick tock indeed...
The application requires, amongst other things:
Note: https://www.mmmd.gov.zm/?page_id=1227
1. Proposed programme of mining operations (should include forecast of capital investment, the estimated recovery rate of ore and mineral products, and the proposed treatment and disposal of ore and minerals recovered)
2. Description of the mineral deposit in area over which the license is sought
3. Statement of duration for which license is sought (not to exceed ten years)
4. Approved Environmental Project Brief (EPB)
5. Any other document as the Director of Mining Cadastre may request
Once GLR's lawyers have checked the confirmation from the ministry and given the nod, and an RNS is published by GLR, I reckon we are then onto disclosing elements of the plan that have been approved. No point publishing it without approval and therefore subject to change. The only slow down in publishing could be to do with contractual arrangements with third parties. All IMO.
Todays Sunday Roast has a few comments on Luansobe. Shinganda and Silverking (XTR)
https://audioboom.com/posts/8500425-sunday-roast-featuring-jason-starr-chief-executive-of-dillistone-group-dsg-atn-cgnr-kav
A full update in the next week.
The Luansobe open pit ore is 1% Cu overall. The cut off grade - i.e break even point for being economical is 0.25% Cu. Therefore theoretically 0.75% is profit. Rule of thumb is to double cut off grade to be prudent. If the cut off grade was > 1% then it would be uneconomical. Clearly it’s economical. If it weren’t they would not have applied for a mining license.
What is 0.25% ? Certainly not Luansobe. Most of the ore is >1% and will be highly profitable in a rising copper price environment.
0.25% cut off grade. I.e break even point.
The JORC helps. As does the approved mining license and the extensive artifacts submitted as part of the application.
You need to plan the hole is economical before you order the shovel!
BS I think GLR had a number of plans and offers but until we had the mining license they were all theory and subjective. Hence, no information in detail. Now we have the mining license it is time to negotiate and realise the plan. You can't dig a hole until you possess a shovel.
Bs, sounds like a bluff to put pressure on a potential buyer?
A good read for those so inclined:
Outsourcing in the mining industry : decision-making framework and critical
success factors https://scielo.org.za/pdf/jsaimm/v114n10/14.pdf
I wonder where we will land with Luansobe.
"some owners still employing the traditional schedule-of-rates contract and
others moving towards a more cost-plus-profit arrangement, and in some extreme cases even offering equity in the mining owner company. In addition to this, various incentive and penalty schemes have also been employed, with varying success."
There would be no need for all this exhausting speculation if the management publish nte mining plan and cash flow forecasts. The Co was effusive about Sept/Oct production so they must have a plan in place unless this was just some utter BS "aspiration". If there is some delay we deserve some explanation and a firm project time table. It looks woeful that we have have a 500 million asset, an approval to mine it yet no published plan. We need a more capable Board imo.
Wouldn't have two diggers and two dumpers. One digger loads a dumper while the others in transit. Maybe 3/4 depending on the travel distance. Some diggers can load a dumper in 3 scoops.
It's 1600 tons per day all Yr, 160tons per hr over a 10hr day, 100 on a 16hr day, that is a 20 stop 5ton dumper over 10hrs, all very doabke without much ground moving equipment, most likely 2 diggers 2 dumpers and maybe a dozer, we could lease that for peanuts , crushers ate cheap 100k bot sure about a small concentrator
The more we process the more value we extract. We need to see the mining plan and the chain to the point at which we extract the value. 👀 forward to seeing it.
That is correct FS
Colin did speak of crushing n concentrating the ore before shipping which would increase the profit for us
To expensive for us, better to let them do it for a fee or buy the rock from us, I could be wrong but I thought colin said previously that we might jv with the processor, one thing that's expensive is actually selling the final product, selling the rock removes this hassle for us
Here's a funky thought :-), would those modular units that JLP are using work at Luansobe? With a tweak ... Colin and Leon are close.
2kt per day is manageable for sure Funky. We will be paying the processor to process the ore - which is in the 0.25% cut off (break even) and 0.25% prudent cost uplift.
Maybe lease a few diggers n trucks n do it ourselves🤷