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The old opex was approximately US $300m P/A
If they can reduce it to say US $200m P/A
That's US $5 Billion over 25 years.
Add in the capex at say US $750M or even the original US $1 Billion.
Even at the Conservative 8k per tonne, over $4.4 Billion left! That's US $175 million P/A revenue.
So basically, you can't get a pre feasibility on an inferred resource. This is why we have some indicated and will drill more to change the high grade top, into indicated. Why? Because you can't say to AA your building a mine, without a pre feasibility study. We need a sufficient pre feasibility study to declare decision to mine and break away from AA or they take it.
Regarding there not being Capex added to the economics so far, this is irrelevant as they do not know what the new Capex is, so why tell us now and then change it. I know Steve is saying this is terrible and they are doing it because otherwise it is not economical.....blah blah. That's a load of rubbish as the original capex was only $1 Billion us dollars. With a reduction of capex from the concentration being added, it may drop to $750M.
The opex may reduce by 65% with the concentration process.
The current 1.3 MT is worth $10.4 Billion at a very Conservative $8k per tonne.
$13 Billion at $10k
Indicated Mineral Resource
An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality,
densities, shape and physical characteristics are estimated with sufficient confidence to allow the
application of Modifying Factors in sufficient detail to support mine planning and evaluation of the
economic viability of the deposit.
Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing
and is sufficient to assume geological and grade or quality continuity between points of observation.
An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured
Mineral Resource and may only be converted to a Probable Mineral Reserve.
Mineralization may be classified as an Indicated Mineral Resource by the Qualified Person when the nature,
quality, quantity and distribution of data are such as to allow confident interpretation of the geological
framework and to reasonably assume the continuity of mineralization. The Qualified Person must recognize
the importance of the Indicated Mineral Resource category to the advancement of the feasibility of the project.
An Indicated Mineral Resource estimate is of sufficient quality to support a Pre-Feasibility Study which can
serve as the basis for major development decisions.
developed mines. Inferred Mineral Resources can only be used in economic studies as provided under NI 43-
101.
There may be circumstances, where appropriate sampling, testing, and other measurements are sufficient to
demonstrate data integrity, geological and grade/quality continuity of a measured or Indicated Mineral
Resource, however, quality assurance and quality control, or other information may not meet all industry
norms for the disclosure of an indicated or Measured Mineral Resource. Under these circumstances, it may be
reasonable for the Qualified Person to report an Inferred Mineral Resource if the Qualified Person has taken
steps to verify the information meets the requirements of an Inferred Mineral Resource
Inferred Mineral Resource
An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or
quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality continuity.
An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated
Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the
majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with
continued exploration.
An Inferred Mineral Resource is based on limited information and sampling gathered through appropriate
sampling techniques from locations such as outcrops, trenches, pits, workings and drill holes. Inferred Mineral
Resources must not be included in the economic analysis, production schedules, or estimated mine life in
publicly disclosed pre- feasibility or feasibility studies, or in the life of mine plans and cash flow models of
e-Feasibility Study (Preliminary Feasibility Study)
The CIM Definition Standards requires the completion of a Pre-Feasibility Study as the minimum prerequisite
for the conversion of Mineral Resources to Mineral Reserves.
A Pre-Feasibility Study is a comprehensive study of a range of options for the technical and economic
viability of a mineral project that has advanced to a stage where a preferred mining method, in the case
of underground mining, or the pit configuration, in the case of an open pit, is established and an
effective method of mineral processing is determined. It includes a financial analysis based on
reasonable assumptions on the Modifying Factors and the evaluation of any other relevant factors which
are sufficient for a Qualified Person, acting reasonably, to determine if all or part of the Mineral
Resource may be converted to a Mineral Reserve at the time of reporting. A Pre-Feasibility Study is at a
lower confidence level than a Feasibility Study
I've lost count of the presentations and new projects. I've also lost count of the times we've heard the words potential, due diligence, imminent, share holder value etc etc
Anyway, I've been staying away for a while and it's been bliss. I'll stay away a bit longer until the next RNS with promises.
Have a good weekend all.
Trying hard to polish turds I see!
I thought eureka was a potential iocg?
Typical cycle from xtract.
No good news, nothing good has happened......update the website or do a presentation to keep the shareholders chasing the carrot!