Member Info for Dcat80

Lucky - Solgold RW-rated not because of the discovery, but after when market say they didn’t just have a discovery, but backing financially to progress it after constant ever lower placings during a bear copper market crashed the SP.

Their SP on day of discovery hole (hole 5), was 10p. Spiked to 16p on the day, before falling sub 2p over the prevailing period. When financing was agreed through MAXIT and subsequent major interest the SP rocketed from 3p to 40p within 6months, with the new shares issued the MC increase as much higher.

If everything comes together for XTR on the legacy assets then we won’t have the funding issues Solgold experienced crashing their SP in the first place. XTR potentially are on a very unique position of being a micro cap, with a huge project in bushranger that could be funded without dilution.

I t wasn’t a dirty ramp when I said 50 bag potential, that’s what bushranger can deliver. However it’s imperative those revenue streams come through to support developing it without Colin having to go back to the market for funds.

https://www.northernminer.com/news/mariana-resources-completes-pea-hot-maden-turkey/1003782570/

DS- the only project I’d seen posting a project NPV over $1b and irr post tax over 100%. Since been told about Adriatic resources- you might want to check their MC as they are still going

DS- no, I got into Mariana rather late in the day. Before the PEA and subsequent buy out for what was a relatively quick bag, but not early enough for the many bags quite a lot made there. Fulmar29 who holds Jangada and occasionally drops my was in much earlier than I and might be able to provide further insight.

I’ll post comments on the features specific to Jangada shortly. Maybe that’ll be liked more than my efforts to help educate people more widely...

Total value inground deposit.

State the obvious, but the more metal you have in the ground the larger your project NPV could be...

What is the total value of your deposit, ignoring any costs and as though it was magically beamed into a warehouse in pure form? 1m Oz gold for example would be $1.861b.

2m tonne contained copper (say 200m deposit at 1% grade) would be circa $15b (at $7500 per tonne)

Grade/value of material per tonne ore

The most obvious and what most PIs get excited about often to detriment to other factors.

What is the average grade reported? What is the value of that average grade per tonne of ore. Copper for example is circa $7,500 per tonne at the moment so the value per 1 tonne 1% copper ore is $75. Gold at 1 g/t is currently $60 value. Obviously the higher value per tonne ore the higher your revenue, even smaller plant can pack a punch.

Opex

Well worth reading this article, low grade mines need to be low cost.

https://www.mining.com/profit-low-grade-gold-mines/

Again location. - post processing concentrate/producing still needs to get to a customer. Less an issue for high value commodities such as gold, more relevant to lower price per tonne commodities such as iron (even with current price)

Open pit/underground - underground is much higher opex. Supports required extending tunnels, getting ventilation, water etc into mines. All adds up

Strip ratio. How much dirt is above the deposit you are looking to process the ore of. Best deposits are at surface. Is the interval of mineralisation worth digging all the ore above it? 1 metre intercepts of low grade certainly won’t be economical if you’ve got to remove 100m before you even get to it!!

Labour costs - what’s the average wage in country?

Metallurgy- what is recovery rate? Can ore be concentrated before more expensive processes such as use of acid?

CAPEX

Main factors early doors that can be considered are;

Location. Is mine near existing infrastructure such as power, water, transport links. Some projects in far away places might need large Capex spend building roads and in some instances ports.

Will mine non plant Capex? Often tailing dams etc will need to be built before production starts.

Will mine need to be underground with access made before excavation of Ore? Underground mining includes lots more upfront work than open pit. Look at time bring taken on Ivanhoes Kamoa mine (great grades/economics, but lots of work before production starts.

What size processing plant will be used? Often unknown early on, but CEO may well reference plans and larger deposits capable of high annual production over long periods will be larger projects, with larger plant

Might as well start with the educational bits first. This really is relevant across all mining projects and for those of you wanting more knowledge of the sector should be quite useful

BF - I intend to write a little chain on key financial considerations a PIs should be considering to get a feel for economics before any study released.

These are namely
Capex
Opex
Grade/value of commodities per tonne ore
Total value of inground resource

The vast majority only use twitter for confirmation bias, ridiculous how many value my thoughts on Arcm, but don’t show any interest in Jangada (for which you are aware I’ve posted is my largest holding). If my opinion is indeed valued then it doesn’t take a rocket science to think “perhaps I should look at the notes he provides on Jangada). Actually gets me quite angry at times, they’d rather chase the crap being pumped bu the P&D merchants pumping whatever they’ve recently been involved in a placing on! Breath Dcat80, count to ten ;)

You are of course right though that Jangada is front and center of my mind. Once I’ve covered the aspects to consider for economics I’ll post my notes on the various features, demonstrating just why I’m very confident our PEA will be o/s with a very real chance of being in the rare band of $1b+ NPV and over 100% post tax IRR (no pressure Brian/Luis ;))

Obelix - no worries. I’ve tried finding way we can direct message (via Twitter) so I could get a 20 page research paper written earlier in the take over to you. If you want that then find me on twitter, don’t share email address etc here as against lse rules and god knows what loonies might look in!!

https://www.tronox.com/download.php?path=12395

Tronox is the name I forgot.

We are also all aware of Largo and their ambitions. They have a sales team for their vanadium products and will obviously utilise those for their tio2 products when producing. As commented before a partnership with largo brings benefits to both companies..

Obelix- many options. Most obvious for the magnetic portion (iron/vanadium) is the steel mills near Fortaleza. Non magnetic either (tio2) either export to China or as there is shortage in Brazil to the large tio2 company (whose name I’d need to check quickly). Updated logistics study is likely to provide guidance as will obviously be to area customers are in.

Until we get an offtake agreement that’s the best I can give

We’ve the components parts of the PEA including metallurgical tests and logistics studies plus more drill assays. Plus maybe another update on fodere- surely they’ve been getting on with things? Q1 definitely the big ticket items with idd add be quite confident firework celebrations;)

Good to have you back Westie, annoying someone’s been selling without giving buyers time in last couple days, but glad to see it’s given you a chance to get back in with a block.

Obelix - no worries, quick question - you use twitter?

Obelix - 230k delayed buy at 9.04am price just under 4.75p.

Silly seller hitting the bid in last few days has at least given a friend chance to pick up 230k shares on the cheap. Not even that many printed sells below 4.75p..

It’s Rios winu project I prefer to gauge against. They’re processing to mine build so gives indication of what a major might want to bite (obviously AA have first option). Bushranger has similar grade. Colin despite all the justifiable criticism on over promising and timescales has form in large copper discoveries with kiwara in Zambia.

Bushranger appears to have scale, something lacking in all other XTR projects. If everything comes together XTR with bushranger has the 50bag potential to excite the market. Stating the obvious derisking comes positive first drilling at bushranger and what this BB seems focused on- legacy assets finally coming through to fund what isn’t going to be cheap drilling.

Find this bb too depressing to read often, but sincerely hope it all comes through to reward patience of those underwater for so long.

https://www.riotinto.com/en/news/releases/2020/Rio-Tinto-reveals-maiden-Resource-at-Winu-and-new-discovery

Guys - you know what this means. Xmas card write up has finished, run
To the door with excitement like a puppy every time you see the postman as your Xmas card might just arrive ;)

On more serious note, good to see the consistency in grade continuing. Very much in line with average from earlier drilling with good high grade intervals. Tio2 again stand out material :)

BF- Arcm assays today are more is use for geological understanding, they aren’t in themselves able to make Fwiji a commercial discovery and more work will be required. Think that’s why few sold off there, perhaps ignoring it’s the commercial transaction with Anglo American that is key driver, no discovery at fwiji was factored into MC and Anglo only 2 days ago confirmed happy with their technical review and now moving to due diligence for a commercial transaction with Arcm. I cover further in teeet below for anyone with an interest there.

https://twitter.com/davidca041980/status/1336756803556823040?s=21

Moving back to Jangada. We’ve very different drilling to Arcm. The iron in the VTM deposit js highly magnetic, the deposit out crops at surface and its mineralization that is fairly consistent in grade. All of this is a huge positive for Jangada as unlike most drilling (which you don’t really know what is there until drilled) we to a high degree of confidence do- it’s outcropping at surface and highly magnetic. Can’t understate how cheaper that makes probing a resource.

The specific gravity of our ore is also twice that of copper ore bodies. Basically that means every cubic metres of our ore has a mass of 5tonnes. For copper ores it’s nearer 2.5tonne per cubic metre.

Hope those points make sense, if anyone has questions on the Jangada aspects then ask here, anything in Arcm drop me a line on twitter as this isn’t the place to discuss Arcm