Member Info for Cornishknocker

On grade and tonneage yes, and with the ore body style, the mining cost should be cheaper, but there is a lot more to be factored in - how treatable is the ore? Is it cheaper or more expensive to process than the Redmoor ore? is the capital cost of the processing plant more? how does the recovery compare? the flip side of large deposit is you need larger mining equipment, which increases the capital cost there?

Can't disagree with any of that Southwesterner, especially the bit about Redmoor no longer being principally tin. However on the price front the entire peer group is using $20 - 22k in their calculations. So while we can contest the validity of that price, it does make for equal comparisons

As to comparisons, the IRR and NPV stack up favourably amongst its peer group. As for a comparison with Parys Mountain, first thing remember that Parys mountain is a copper prospect, not a tin prospect, so you cant directly compare. A crude comparison is to say that the tin price is 3 times the copper price, so divide the 5% by 3 and say its 10mt @1.66%Sn equivalent

There appeared to be some confusion about the term NPV (NET PRESENT VALUE) , which is exactly what it says it is on the tin: - the present value of the project, net of all costs. All cashflows on the project have been discounted at 8% per annum, so the NPV of $92 million is what is left over at the end of the project after all incomes and expenditures are accounted for, adjusted for interest and inflation. In simple terms you go to the bank, borrow the $85 million for the capital at 8%pa, at the end of it you have money equivalent to $92 million today in your bank. I think this is where the confusion was coming in, someone could look at it and say "hang on I'm spending 85 million to make and at the end of it, it's worth $92 million". That's a pretty poor investment in anyone's book, what is being overlooked is before the $92 million NPV, they have borrowed the capital outlay and repaid it with interest - so in effect they started with $0 and at the end they have $92 million - now that is a far better investment! In terms of is it world class, in the tin sector, I believe it is.

This has been tins historic issue, tin is not found in huge quantities like copper, 10,000 tonnes of tin metal pa,is a very large tin mine, but that is only a revenue of around $320 million a year, it sounds a lot, but if you have an operating margin of 10% ($32 million p.a.), that means that you cant really afford to spend more than $100 million on the capital cost - which would be difficult for a large mine, especially when you consider that primary tin is found in sub vertical lodes in the main - that means a lot of underground development, which is hugely expensive, the win with Redmoor is the deposit is available close to surface.

The mine development costs are 85 million dollars not 6 million. The 6 million gets you a hole in the ground.

On past quarters the average price received for our bullion has been pretty much the average quarterly gold/silver prices. For Q3, the numbers are very good, the average gold price for the quarter was $1910.34 (Up 11.56% on Q2) and the silver price averaged $24.27 (Up a massive 48.15% on Q2!). If production is the same for Q3 as Q2 (Its likely to be lower), that would be an increase in revenue of $1.3 Million.

I would say the actual price being recieved suggests the payment is directly in us $

The value of the Lira isn't overly important as the income is in US dollars (Bullion sales),

The actual press release from GE, suggests they are looking to sell the coal plant business (why wouldn't they?), which means they need an order book

I'm not sure your logic necessarily follows through, drakelands is ultimately a constructed, permitted mine. Redmoor is a mineral resource.

A good example of the importance of understanding the local geology was shown at South Crofty today, with the announcement of an intercept showing good grades over 100m down dip from where a lode was last mined - you can hypothesise that it's a continuation (and its likely to be) but theres no way you can say its 1800mm wide and 2.5%Sn from the bottom of the last working to this hole, over its strike length.

Absolutely, its spacing not grade that dictates the categorisation. One hole at 10% means nothing, 2means not much more. You get three, if there is a good geological model of the area you can hypothesise what you're looking at, then you can start reinforcing the model with subsequent drilling. Anyone familiar with orebodies knows how variable the grade with the body can be, to get to proven reserve stage you are talking really small distances between holes.

Absolutely Troajan, running a limited batch amount of ore through a pilot plant is not the same as continuous production with continuosly varying feed.

The two operations are geologically incomparable, Wolfs Hemerdon mine is adjacent to Lee Moor China clay pit and the operations are exclusively in granite. For those that don't know, china clay is kaolinised (decomposed) granite, the decomposition typically occurs close to surface. Redmoor is a deep project, mainly in the killas (not granite) and even when it gets into the granite it is not likely to be decomposed. As an aside Hemerdon is currently in the process of reopening by a company called tungsten west, with the introduction of x ray ore sorting, which enables the waste to be eliminated in a dry unmilled state.

That applies to every project does it not?

Without a definitive answer it's hard to say, but just comparing the cash costs between this and Q1 and Q3 2019 (I intentionally left q2 out as it had the royalty) , the actual stated cash cost is on a par with Q1 2019 and significantly lower than Q3- that doesn't stack up to me. We are now mining at a lower grade meaning both the mining and processing costs will be higher per oz, so the AISC should be quite a lot higher.

My heads hurting with that one! The silver price is a total mystery to me there. Trying to figure out how the AISC is being calculated is a nightmare with the corrections for silver production and stockpile - it would be much easier to know the expenditure for the quarter v the income - but that creates its own problems, with approximately 25% of mine production being stockpiled - so I am assuming the stockpile correction is removing the cost of mining the stockpiled ore from the equation - with it to be added back in at a later date when its processed.

I understand that, it was an example to show how density of a lode affects tonnage - I was not suggesting for a minute that our lodes are effectively native tungsten or tin. Which let's face it would be an incredible discovery in itself, although the diamond drilling through it would not have been fun!

It will be interesting to see how the new plant performs at drakelands

Interestingly they bought some of the plant from Hemerdon- is there a common theme?