Member Info for 99icecream

FYI - The news story is about Phosphate not Potash, R o C has both. It also has Natural Gas. So will be in a good position to export all three and also Combined [NPK - Nitrogen, Phosphate and Potassium (Potash)] fertilizers.

"Only 2.5bn of the existing 6.9bn tonnes of JORC compliant resources will be required to support 30 Mtpa for > 30 years".

2.5/6.9 = 36%

Its been frequently stated that only half of Zanaga was drilled in orter to suppord the 30 million tonnes per annum plans.

Page 29 implies that only 36% of Zanaga was drilled.

should be can't see !

MM Page 27: Reserves = 2,070 m Tonnes, Resources = 6,900 m Tonnes -- can see "The full Resource is 2,200tonnes"

BTW There is an interesting comment on page 29. "Only 2.5bn of the existing 6.9bn tonnes of JORC compliant resources will be required to support 30 Mtpa for > 30 years".

Which implies that at least (6.9 / 2.5) x 30 = 83 Million Tonnes per annum would be possible.

Or the reserve of 2,070 x 33.9% / 67.5% = 1,040 Billion Tonnes

Couuld be 1,040 BT x (6900/2500) = 2,870 Billion Tonnes (i.e. a bit lower that the 3,250 Billion from the resources due to higher confidence) had the entire site been drilled.

MM as before the resource figure is: 6,900 x 32 / 67.5 = 3,250 m Tonnes approx

If you want to be exuberant about ZIOC (rationally or otherwise) you could at least use the correct numbers !

Strange to overlook Oman investment Authority ($ 40 Billion in Assets) or SQM (the largest producer of Lithium)

Hi Kanga is Potash - a huge resource but lower quality.

https://www.nsenergybusiness.com/projects/kanga-potash-project/

Kola 180m to 300m depth - Underground mining
Kanga 300m to 1,100 m - Solution mining

There may be a reason, but I think its a reasonable question !

Wacker - If you do underground mining below the water table then preventing water ingress is (IMHO) a much bigger issue for underground mining- you need pumps and maybe ground freezing. Solution mining would be easier and safer.

ATG - I think Power China maybe looking at the question that has bothered me for a while. Why would Kore/SEPCO want to use Underground mining at Kola rather than solution mining ? Solution mining is planned at DX also at Kanga. Its cheaper, quicker to put into operation (2 years vs. 4) and yields are potentially higher. It is also considerably safer, something that is topical given recent events in Spain.

https://www.reuters.com/world/europe/three-workers-trapped-spanish-potash-mine-after-underground-collapse-2023-03-09/

https://gensourcepotash.ca/potash-mining/

ATG - "Sepco III keep changing their story". How so ? - I'm interested to understand your point.

Minor Miner - No worries - its only a Billion tonnes of Ore difference !!

32% is the iron content, so the get the amount of Ore with 67.5% Iron Content

6,900 x 32 / 67.5 = 3,250 approx

Minor Miner I find your 2.07bn Tonne number a bit misleading as its the Reserve number and its before benefaction.

The Reserve is 2.07bn Tonnes of 33.9% Grade Iron Ore ==> 1.00 bn Tonnes of 67.5%
The Resource is 6.89bn Tonnes of 31.7% Grade Iron Ore ==> 3.25 bn Tonnes of 67.5%

Only part of the resources was surveyed (hence the smaller reserve), and some of it may ever be mined, but the potential is vast.

C.F. Simandou where the Iron Ore Resource is similar in size, but comes out of the ground as much higher grade.

Our first Sat Nav (12 years ago) was very insistent if you chose to ignore its advice. It tried to send me down a Bridle path once.

Veteran10. IMHO 6p is the price at which small numbers of shares trade and has nothing to do with any rational definition of value of the company.

When Zanaga came to the market it was at £ 1.56 , and since then several million have been spent on drilling the site etc.

So I could ask How do we go from £ 1.56 to 6p ??? The work has largely been done and the ore price is close to its original value. Furthermore, the prospects for high quality ore prices are very good. Note the debate over steel making in Port Talbot as an example of what is coming to the Steel industry. UK Government needs to fulfil climate targets and will need to provide subsidy to convert to "Green Steel".

£2 would be very cheap IMHO, but many would be happy to sell at that price. I suspect that anyone who bought at £ 1.56 would want £ 3.50 minimum (= 10% p.a. return). The value here could be huge if China ( e.g. RTZ/Baowu) wants it as there is between 1 Billion (based on Reserves) and 3 Billion (Based on resources) of 67.5% grade Iron Ore.

A hidden bonus for BHP ?

https://www.bloomberg.com/opinion/articles/2023-04-06/will-glencore-go-from-teck-s-predator-to-bhp-s-prey-in-mining-m-a?leadSource=uverify%20wall

I think the Sino Agri Potash project is a rival in Laos. I had already seen this in relation to Sino Agri

https://thechinaproject.com/2022/02/10/what-a-skirmish-at-a-laos-potash-factory-tells-us-about-chinese-activity-on-the-frontier/

Thanks for that Wacker. The only one here that might be relevant is the Vientiane Plain Potash Mining Project in Lao PDR, but I cannot been able find if it is an surface mine or (dug or pumped) underground mine.