Member Info for Dcat80

Another example of VTM deposit company successfully upgrading their non-magnetic Ore with Ilmenite into a high grade 99%+ purity Tio2 product..

https://www.proactiveinvestors.com.au/companies/amp/news/955657

Gallmat - thanks, last proper article I had was pigment $3100 and Ilmenite $310 but that was from circa 3mths ago. Knew prices has been increasing, but not by that much.

The company at no point have ever signaled intent to monetize the Tio2 other than as a product after benefication, nor can we choose to do as we please under a trial mining licence, the purpose of which is to allow mining under an exploration licence, but within a rigid framework.

It really is good to see you trying to understand this aspect, even at its most basic form of selling unprocessed, however I’d caution against expecting this too early. The project will go through multiple stages of development with TM being useful in providing income for general working expenses, increased exploration and further test work and ideally to build up cash which could cover equity portion(or part of) a more complex plant to be built when full mining licence is submitted and approved.

I think it’s great you’re trying to understand the Tio2,

If you want a comparison of existing producer then check out Kenmare (London listed) when they recently produced their guidance of supplying 1.1mt-1.2mt Ilmenite this year their MC was £488m. Different style operations so maybe comparing apples to pears, but I’d imagine with our grade being higher and the concentrate being a bi-product of the separation we have to carry out that our costs would actually be cheaper..

Mesb - it’s reported as the Tio2 content grade, not the Ilmenite grade. As you say Ilmenite is approximately 50%Tio2 so our non magnetic ore is roughly 60% Ilmenite.

Mineral sand operators have considerably lower Ilmenite grade, again sticking to the Tio2 content comparison I’d below

Jan non magnetic ore circa 34% Tio2 grade
CMET mineral sand circa 13% Tio2 grade
Jay mineral sand circa 6% Tio2 grade

So yes in theory we could just sell our non magnetic ore (when mining licence allows - TM has restrictions) as a high grade Ilmenite concentrate. Ilmenite prices currently circa $310 per tonne

Unfortunately in same boat as BF, BF hope you showered ;)!

The question was raised way back when we had the maiden resource report on why it was done to an NI43-101 standard as required be Canadian listed companies, rather than to JORC standards as previously used by the company.

Possible answer being we’ve always had eyes on Largo with them being Canadian listed, we also amended our accounts which now conveniently are same dates as largo meaning any future accounts on the project could be done at same time for ease.

Until any such deal is announced though we’re purely guessing, it could just be they’re easy enough changes to have been made to make us more attractive to them or could be early stage discussions were made way back then!

To be honest pitombieras north covers us for TM purposes, the increased resource obviously will help mine life and NPV, but any short term debt more likely to be focused on payback I.e. IRR.

Do wonder if resource expansion was more to fit the criteria of a potential partner, or help more with economics of operation wider than the DSO of the magnetic ore

At the time I thought more a matter of testing the mineralization at the other targets just to check grades and thickness of intercepts are broadly in line with the pitombieras north deposit we’ve drilled, but not enough drilling to create resource report against them. Maybe mocidade as well?

Not just me that hurries and makes typos and let’s autocorrect have its fun!!!

Need to look not just at short term graph, but from start of year. We’re almost 20% off placing price and 34% off highs just after the initial PEA.

In last month alone we’ve reported 52% increase in resource and award of trial mining licence. In a better market we’d be valued much higher than current sub £20m MC…

Zinger. SP in the short term obviously affected by a number of factors predominantly being what investors consider fair value, sentiment and exposure (how many know about it).

Investors usually assess their own thoughts in far value on exploration plays by assays, a % of inground resource or against an economic report plus other factors such as jurisdiction. Producers on the other hand against profit/free cash flow, mined grade and what remains of the reserves.

Jangada in my view even when trial mining is still at exploration/development stage. I’d expect the company to release in the years ahead a number of updated economic reports covering plant expansion (inc Chemical plant plans to produce higher value products) and increased reserves needing into longer nine life, increases in plant throughout capacity or combination of both.

As I consider is still very early in the development stage my current fair value MC based purely on the current PEA released Q1 and envisaging just a DSO operation in the magnetic ore only is a fraction of where I think fair value could be in later years once more is drilled and economic tests run on chemical plant. Obviously during this period I’ll be looking to check company is making progress making my fair value at each given time increase.

It’s not a black and white answer I’m afraid, but sure you’ll follow it.

Zinger - the plant has capacity for 1.1mt of which circa 60% would be magnetic and 40% non magnetic post separation.

Whether Jangada would later expand the plant to capacity beyond 1.1mt PA I expect would largely depend on how much reserves are later proved up. If we got for example to 60mt deposit across the licence then that could support a 30 year mine life for 2mt.

Mineral sand operator Kenmare comments. Future Tio2 price increases expected after some earlier on the year…

https://www.miningreview.com/business-and-policy/kenmare-resources-confident-on-outlook-for-annual-production/

Plenty going on at the moment to be fair, but see you’re point. Next year we should get production updates alongside project development updates as cash from production put to work.

DS- yep plenty due and sure we’ll have more to talk about when it does!!

Obelix - outside of frustration with the overall market I’m well thanks, hope all good with you to!

Plan might be to drill more and test the other targets, however goela was being drilled after pitombieras to add into resource report.

Yep need on how or with whom we’re developing the project could land anytime.

Posted below back on 16th June. Can tick off the pitombieras resource update and TM approval since then.

Reminder of what I posted last week, hopefully this just the start of strong newsflow

??Monthly assays usually received this time month
??Updated resource at pitombieras north (85% of current resource)
?? Mocidade update (exploration work commenced Oct so overdue)
?? Additional licence news (expect us to be locking up more land before rush....)
??Goela drilling
??Met test work results. Now progressing with dry magnetic separation route so dry testing must be good
??MOU update with state Ceara to make project part of state development agenda
??Port of Pecan negotiation update/updated logistics report
??off-taker discussions/MOU

All leading into the big ticket news items of
??Updated PEA expected early Q3
??Trial mining approval

In addition could get update on Fodere group, any work being done on the Tio2 and perhaps later partner news..

I’d imagine they’re trades from the commission free platforms such as etoro, seem to go through at bid/ask when mm changes quoted prices. Frustrating after couple days of sensible selling we had 400k sells in first ten minutes, expect someone chasing an RNS somewhere…

Plenty news due, I’ll see if I can find list

Half glass full approach bring lots of potential news is backing up/soon due, hopefully enough to get traction on bringing GLR to attention of others and a MC to better reflect value of the assets.. Frustrating to see silly selling such as bid hitting or selling below, especially on low liquidity stocks, alas though they seems to be case across the market nowadays!