focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
There are three distinct elements to the Luansobe:
a) The Open Pit - delineated - can operate on its own
b) Underground - delineated - can be reached on a ramp down from the pit
c) The 'deeps'
The JORC gives details on grades and tonnage for a) and b)
c) this is what makes it interesting for Mopani. Read: https://mrdata.usgs.gov/mrds/show-mrds.php?dep_id=10400372
Grades are significantly higher the deeper you go. The tonnage - mention of 65mt - hence CB's and Cooper lemons comments on 60-70mt
The open pit is as easy as it gets. Low overburden. 1% grade. 0.25% Break Even (cut off) grade. I would not sell the ore. I would outsource the mining, the transporting, the processing and would hire a guy or two to make sure it all comes together. The numbers are compelling and a significant multiple of current market cap.
Operate the Open pit as above = $$$ , drill the remainder of the site and if good enough - sell to a third party. Likely Mopani given it is along strike - they could probably use the existing shaft.
Copper is ripping: https://www.livecharts.co.uk/MarketCharts/copper.php
2204 lbs * $4.70 = $10,358 tonne - copper.
Looking great https://www.m.livecharts.co.uk/MarketCharts/copper.php
18 Months or never wasn’t it Levi? Strange for a soul boy to be so negative ;-)
You continue in your confusion Levi. I would have thought you had run out of continually negative posting by now. Guffaw guffaw snort …
Thanks Cyber. I’ll take a listen later.
You are confusing me with someone who might actually care about your continually negative opinions or lack of research Levi.
Best you sell your £500 worth Levi ;-)
You need to calm down BS. This is junior mining. Maybe a cash ISA would suit you better. The rewards in junior mining can be massive. They can also be zero.
The company will want to a) receive the official confirmation from the ministry and b) have its own lawyers give it the once over. The artifacts submitted as part of the mining license application are quite comprehensive. Once we have the RNS I would expect some of the approved material to be released and full steam ahead. CB mentioned he was following protocol and that it was good news - which it is. The herd might want to see other things before they ‘believe’, others will look at the probabilities and think they have enough information already to conclude the RNS will be along shortly.
Prickly. In the portal type the license number 34543-HQ-SML into the search bar. Statunga is the partner - they own 25% GLR owns 75%.
Granted 24/4/2024.
https://portals.landfolio.com/zambia/
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.
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.
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.
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."
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.
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.