RE: Joint Venture15 Jun 2021 19:22
Largo and Tronox are the 2 I’ve always considered most likely, both have TSX listings to explain resource being reported to NI-43-101 as opposed to Jorc and both have operations in Brazil either as Tio2 producers (Tronox) or ambitions to be Tio2 producers (largo), with the Tio2 of course being the commodity our deposit stands out on the most. Obviously Largo also have interest in vanadium..
Any ambitions for operation beyond a simple DSO route at this time is certainly above our own financial means at the moment. I made this comment when on recent interview Brian said they were also considering wider operation.
The DSO process of just mining, crushing and separating ore before transporting it is actually the first step required in any wider operation anyway, as such continuing with the DSO whilst simultaneously planning for bigger operation could theoretically occur.
JV could be with eyes on later stages and only small initial investment by 3rd party now, more to get us up and going with route to wider involvement on larger operation at a later date. Or a bigger agreement now at which point any investment would have to be of size to cover equity portion of any bigger plant build.
If a bigger deal then I think the numbers you mention could well be in the ballpark. It’s the level of injection I’d have thought required, plus it would explain why we drilled the 2000m programme when the maiden resource from earlier drilling has been used to justify TM. The larger resource obviously will result in a higher NPV making an investment of say $100m for 40% much easier to Justify for 3rd party.
I’ve thought for some time discussions would be ongoing, how tentative they are or at what stage of the project a partner might come in though is something I’m much less sure on!!
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