RE: Read between the lines if you invest here6 Sep 2019 16:39
Heritage Diamond Concession update:
Vast Resources plc, the AIM-listed mining company, is pleased to inform the market that following meetings that took place in Harare last week between Vast senior management, the local community leaders and the parastatal Zimbabwe Consolidated Diamond Company Ltd (ZCDC) a road map to closing the agreements that will enable the Company to mine on the Heritage Concession has now been established.
The agreements concerning the Heritage Diamond Concession will now be directly between the Company and the ZCDC rather than the local community, but the local community will be maintained as a beneficial recipient of shared profits as per the original agreement.
Andrew Prelea, Chief Executive Officer of Vast, commented:
“After taking part in the meetings last week with our senior management, the community chiefs and ZCDC, I am pleased to say that the timeline to closing the agreements will now be accelerated. I plan to return to Zimbabwe shortly for what I hope will be the finalisation of the contractual terms, and also to establish the commencement of the project.
“This amendment to the structure of the arrangement should not only accelerate the process to commencement, but should also provide the Company further opportunities to work with the ZCDC.”
Some calculations based on Information on Marange Fields recovery rates , Run rates etc.
GRADE RANGE
50-500 cpht , 100-200 cpht , 100-3000 cpht , Cpht = Carats Per 100/Tonnes , Average Price Per/carat $80
Let’s put some numbers together for the market and investors to understand the phenomenal scale of Diamond mining here with outstanding Revenues available.
Many sites available throughout the Marange Diamond concession obtained from Red Mercury . The following figures are based on running 1 plant !!! There is easily enough deposit areas to be running a minimum of 3 plants.
After looking at plant availability and estimated run rates from ZMDC, at full production I expect Vast to run at MIN 250tph. Potentially and quite possibly Vast should be running 3 plants at any given time.
Using average grade of 250 Carats per Tonne and the Average Carat Price of $80 per Carat.
Calculation for REVENUE:
250 T/ph x 50 Cpht = 125 carats x $80 x 22 hrs run time per day= $220,000 x (365 days) = $80,300,000 (Mill)
80,300,000 Revenue and using the ZCDC cost per ton of $28 gives an estimated PROFIT of $52,000,000 (Mill)
DON’T FORGET THIS CALCULATION IS RUN ON THE MODEL OF 1 LINE , MULTIPLY THE ABOVE BY 3 MINES
$52,000,000 Profit Per Line x 3 = $156,000,000
Taking worst case at 1 line =$52 Mill profit P/A
Vast current M/C £10 ,846,000 seriously undervalued on the Diamond claim alone .
Listen from 10 Mins in , confirmation Vast in talks over Marange.
https://m.miningweekly.com/article/mining-investments-in-zimbabwe-2019-09-05/rep_id:3861