Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Woodsmith project
Throughout 2023, we saw continued good progress on the core infrastructure, with capital expenditure of $641 million (2022: $522 million). Sinking activities at the two deep shafts continue to progress well. The service shaft is now c.745 metres deep, having reached the expected depth for the year. Sinking activities on the production shaft began in January 2023 as planned, at 120 metres below the surface, and following a successful ramp-up to planned sinking rates, is now at a depth of c.510 metres.
Excavation of the three shallow shafts that will provide both ventilation and additional access to the Mineral Transport System (MTS) tunnel is complete. The MTS tunnel is also progressing to plan and has now reached c.27.5 km of the total 37 km length.
During 2024, a key focus area for shaft sinking will be on progress through a strata called the Sherwood sandstone, where we expect sink rates to decrease due to the expected hardness of the rock and potential water fissures. This is planned for in progress rates, and the intersection of the strata is expected around mid-2024. On the tunnel boring machine, there is a planned 3-4 month maintenance pause from the second quarter of 2024, during which the tunnel will be connected to the final intermediate shaft, providing further tunnel access and ventilation.
In parallel to the core infrastructure development, we are enhancing the project's configuration to allow a higher production capacity and more efficient, scalable mining methods over time. The required studies for this are progressing well and will ensure that additional infrastructure is optimally designed to enable future optionality and maximise long term value over the expected multi-decade asset life.
The project is planned to be submitted for a Board approval decision on Full Notice to Proceed in the first half of 2025, following conclusion of the study programme.
Capital expenditure of $0.9 billion is approved for 2024, the bulk of which will continue to be invested on shaft sinking and tunnel boring activities.
The project is expected to deliver first product to market in 2027, with a final design capacity of 13 Mtpa, subject to studies and approval.
Bankrupty:
It seems to be the way with a large percentage of AIM shares. They start life in a blaze of glory then slowly investors realise the hype is simply that, grand plans promoted by the BoD are mostly just pie in the sky.
Unfortunately investors can only make decisions based upon RNS and not on the hidden agenda.
RogerJolly:
I vaguely remember Boyles law but how it would be used to determine how a high gas concentration equates to a large volume of gas is not obvious.
A litre of gas, say methan, could contain 4.7 % Helium if I compress or expand that gas I still have 4.7% Helium. If I divide my litre by a million I would still expect to have approximately 4.7 % of Helium.
Therefore the concentration of Helium in another gas or substance doesn't tell me anything about how much Helium I have in total, except in the sample I have. Obviously I could hope that any additional sample i have contains the same or greater concentrations.
This is the first reported significant find, it would seem a lot of hugely speculative assumptions are being made for this small sample.
RogerJolly:
The last part of your recent post mentions "independent" twice.
But I don't see independent on site PV lab mentioned in the 5 Feb RNS nor does it say a second set of samples will be sent for independent lab testing. ????
RNS 5 Feb
... Downhole fluid samples have been obtained from three separate well test intervals, in the Basement and across the fault zones, all were analysed at surface in an onsite pressure-volume-temperature ("PVT") laboratory and indicated the presence of elevated helium
· Duplicate samples collected from all three well test intervals will be sent to a second laboratory for analysis
Neil777:
So based on your interpretation of he-1's admissions you are now a multi-millionaire, I'm assuming you have bought heavily. How does it feel ?
Just exactly how many millions, if not billions, depends upon how big the " working system" is. There must also be a few hundred other multi-millionaires still recoverying from hangovers.
Me and a few others seem to scent Gatwick Gusher here instead of Helium. I sincerely hope I'm wrong because its high time PIs made something out of AIM.
When the directors start putting REAL money on the line the it may be the real deal but not until.
Neill777:
I'll wait and see. Apologies for what, you got very lucky. Are you saying you have psychic powers and can foretell the future?
Your powers aren't working well here. If you ramp enough companies you will get lucky but will it compensate for the losses ?
Neil777
A whiff of Helium, reminds me of UKOG! I suspect there's going to be a lot of disappointed punters shortly all suckered in by the RNS. which actually says very little Don't get greedy is my advice, the odds are there will be no commercial quantities.