Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Quite a good presentation of ore sorting methodology/technology
https://www.youtube.com/watch?v=_m3kUGyl1bM
Only 3yrs old so fairly up to date.
Thanks for putting that up gixxer.
So exactly where will that profitability come from beyond ‘just’ the increase in resource?
The effect of economy of scale that will increase the operating margins. A lot of the cost in processing is labour, which includes people working at the mine face, plant operators, processing plant workers, upper management staff, accountants, site safety and HR personnel, admin and other general workers.
It doesn’t matter wether a development option covers a 15, 20 or 25 mtpa throughput over 5,10 or 25year LOM, you still generally only need the same amount of staff to run the operation. So half of the operating costs are already factored into a new set of development scenarios with the increased tonnage.
This before any benefits from ore sorting and any other pre-concentration have been factored. If proven successful of which is looking to be with the feedback so far, then it will impact both Cap and Op costs from reducing plant size, reducing water and power usage, including haulage fuel if the barren material can be separated prior to hauling to the pad.
Nearly every test case for BOS has seen the technology incorporated into an existing plant whereas the advantages in tailoring a new plant at BR around the technology could have far bigger economic advantages. Would become a super efficient state of the art plant utilising the most advanced mining technologies too.
2mt blah blah blah
It will be interesting to see the reducing in cut off grade. Could they possible get it to 0.1?
Lucky, didn't Bird, if you can believe what he says, state in the last interview that they got the high grade portion up to 1%
Losses were higher though so they may not even ore sort the high grade portion, as I recall he said anything below ~.32 would go through ore sorting..
Hi gixxer, I meant get the new economic model to work with the ore as low as 0.1 cutoff, which the jorc is.
We might have 1.3mt, but if we can't run the stuff down to 0.1 cut off.......how much will be have.
The lower grade recovery rates are proving to be just fine. The extra samples needed from the lower grade ore are due to it being more widespread across the resource so more representative examples are required to increase the confidence.
I would stick my neck out and say the concept works, it’s down to how effective those recovery rates will be against the reduction of waste rock.
If I am right in thinking, the updated mining study is looking to be based on the whole of the 512mt racecourse resource that is at open pitiable depths now. Previously CB spoke of a 9 year mine life which would have indicated a mining phase of just the extracting the higher grade 191mt crown in an initial CapEx payback phase. The bulk ore sorting technology should now allow them to exploit the lower abundant grades at or below the 0.1%Cu cut off, which would have a significant effect on the economics.
Howzap, yes, the ore sorting is worling well on the lower grades according to colin......no proof in black and white......yet and we still don't know if its profitable. I am praying it is and we can sell it ASAP.
We have to remember that the jorc is 0.1, not all copper. We are yet to hear how the ore sorting is working on the gold/silver/molybdenum, are we even going to look at the molybdenum?
That should read copper equivalent down to 0.1cut off.
Likewise lucky should be 0.1%CuEq.
I’m sure he mentioned at some point the moly will not play a part at RC ???
Yes agreed nothing in black and white as yet. No one will be more relieved than me as have championed the £¥?k out of going down that particular path.
Interesting it says the technology can reduce cost of processing from $10/ton to as low as $1/t.
Correct me if wrong, but I understood Colin sto say that the sorting in higher grade material is seen to increase the ore to over 1%, while anything under .3 % would be processed with lower grade bulk material, further samples of which they are now assessing?
Naughtygordie, that’s a fabulous find. Many thanks for posting! I’ve read the 6 pages, which has opened my mind to the potential, and value, to the mining industry, of ore sorting. And the cherry on the cake is the fact that the Australian based, ore-sorting market leader, NextOre, has their proven technology working it’s magic on a conveyor at the ‘nearby’ Newcrest Mining Cadia East block cave copper-gold mine. My confidence is returning. Bring it home Colin!
Colin said the majors want 25% over Lif of mine.
And I imagine they won't use more than $4 LB copper. So that's what I'm looking for in the new economical model and if it is that, then I expect more drilling.
Don't know what NPV will be, but I am looking for approximately $500m with a sale price of a third.
*and if its not that
Lucky520 > "Don't know what NPV will be, but I am looking for approximately $500m with a sale price of a third."
that would be around 17p a share wouldn't it ?
13p approx with today's exchange rate and 1 billion share in issue. Depends on any more dilution from option etc.
Yep, I forgot to do the forex calculation to £ !