Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Ian
I understand that TUN had to produce those reports, to satisfy the Environment Agency that the low frequency noise problem encountered by Wolf operations, could be overcome. Without satisfying the EA, there was and is, no hope of being granted an operating permit.
LB
Hopefully the baffling / negative sound waves will have done the trick anyway.
LB Cracking find! Hope at the 11th hour.................
Https://invinity.com/wp-content/uploads/2023/09/Invinity-Planet-MicroCap-Presentation-Sept-2023.pdf
Kemexon got their timing right!
https://www.bbc.co.uk/news/topics/cxwdwz5d8gxt
Up 3.58% so far today.
DVH
Good point. It is worth clarifying whether the directors have taken a pay cut, or are merely paying themselves less in cash terms whilst accruing the difference to pay it later when a fund raise has been completed.
Ian Gordon "In my opinion , if one goes the magnetic route then there is no need to operate the Dense Medium circuit and no need to repair it as it will stay idle ( about 60% of the plant idle and a big energy saving )"
It was in late January or early Feb 2022 that the company had decided to use Wet, high intensity magnetic separation, albeit not perhaps initially. Whether that changed at a later date, or the equipment was ordered, is unknown to me.
Heads need to be knocked together in the country's interest.
A solution to the low frequency noise must surely be found. Too much is at stake. My guess is the new crushers will sort that out.
Per Chairman's statement...................
Some of the key highlights from the 2022 FS update were:
· A post-tax Net Present Value ("NPV")5% of £297 million (base case) with an Internal Rate of Return ("IRR") of 25%
· An Upside case post-tax NPV(5%) of £415 million with an IRR of 32%
· Life of Mine ("LOM") of 27 years and an annual average steady-state mining rate of 3.5 million tonnes ("Mt") per annum
As outlined in the Company's announcement of 19 December 2022, we were also able to report an update to the 2021 Hemerdon deposit Mineral Resource Estimate ("MRE") due to changes in costs and processing assumptions, affecting the breakeven cut-off grade. The Group reported a 60% increase in ore tonnage and 10% increase in contained metal from previous 2021 Ore, taking the Hemerdon Ore Reserve to 101.2Mt. As a result the Hemerdon deposit is estimated to be the second largest reported CRIRSCO standard tungsten reserve globally. The lift in both the Ore Reserve and Mineral Resource could only be achieved from the work that has been undertaken this year as part of our work on updating the Feasibility Study, cost saving initiatives and operating efficiencies across the business.
And even the US Department of Defense have visited!
And the current market Cap? £3.8m !
Ian here is an extract which may help:-
Throughout the year, the Group continued to engage with their long-lead capital equipment suppliers, which included placing an order for the new semi-mobile primary and secondary crushing circuit which is being supplied by MO Group (Metso-Outotec of Finland). The seven ore sorters required for the plant upgrade have been delivered to the Hemerdon Mine. The construction of new screens and vibrating feeders provided by Vibramech was completed and these have been delivered to the Hemerdon Mine.
and
Inside our Mineral Processing Facility ("MPF"), a number of enhancements and upgrades have been taking place, designed to increase efficiency, reduce future downtime and reduce future maintenance, all of which were key factors that caused the previous operator to incur significant downtime. This enabled the refinery and magnetic separation end of the plant to be commissioned in April 2023 and produce approximately 50 tonnes of tin and tungsten concentrate from materials left by the previous operator.
Semi mobile crushers have been ordered - but whether or not delivered is unknown,
Why not take a look at the recently published reoort and accounts - in particular the Chairman's and Ceo's reports? See...............
https://www.londonstockexchange.com/news-article/TUN/final-results-for-the-year-ended-31-march-2023/16123544
Ian
About 18 months ago, the plans for the process plant included two key changes vis-a vis the Wolf set up.
1. The use of X ray sorting machines
2. The use of high intensity magnetic separation (perhaps not to be used initially)
I think the plant was going to be set up so it could process both Ferberite and Wolframite.
How that may, or may not, have changed in the last iteration is unknown to me.
BP Are you "hug and holding" IES or are you adopting a zero sum game of trading it?
If trading, when did you last sell and when did you last buy?
Ian "The present administration of TWL has never operated the plant and getting the “ show on the road “ is not necessarily the best thing to do "
I am under the impression that there was a test run on the plant carried out a few months ago.
Delaying getting the show on the road, may of course mean raising yet more money, having to re-submit an application for a different operating permit and then waiting 16 more weeks for the EA to issue their verdict. I would be amazed if the Ferberite point you have raised has not already been considered by the BoD. Good luck anyway with your efforts - it will be very interesting to hear how you get on,
RW said in his Pro-active talk
".......we believe there is potential to not only grow the mineral resource base, but also to potentially expand production rates......"
I think that could raise the project NPV significantly.
Good luck. I hope you are able to add the the knowledge brought to bear to get the show on the road.
Ian
If you go through the normal channels it would be
Tel 01752 278500, and arrange a call.
Ian Gordon " I discovered the Wolf Minerals error after the plant had been shut down by reading the 2007/2008 Australian laboratory reports and the Tungsten mineral is Ferberite and not Wolframite …. However Wolf built the plant for Wolframite recovery and not Ferberite !!!! The fatal error in that they designed the plant for the wrong mineral and the result was low recovery during the 3 years of operation ( 2025-2018)"
My understanding is that both Ferberite and Wolframite are present in differing percentages dependent on host (killas / Granite) and depth.
Since Wolf there have been at least two main iterations of the processing plan - the first to overcome the Wolf problems, and the second to address the massive inflation encountered in the price of steel, diesel and gas, etc and the loss of red diesel. Like you I am out of the picture as to the final version.
I suggest you ask to speak to David Cather (Chmn) to discuss your ideas - talk can do no harm! However, as the operating permit application result is imminent, I guess a change to the proposed process sheet is unlikely.
I Gordon welcome to the board.
Re your comment "....and the present management needs to be pushed and persuaded into making the necessary changes to a much simpler plant design using less energy and getting much better metallurgical results …. Keep it simple ..............."
The current management have already done what you suggest and redesigned the flow sheet taking out much of the energy intensive work. I think, but do not know for sure, that it has been this re-design which has necessitated a delay for re-submission of the operating permit application.
Onshell
My understanding re number of employees is that management were getting existing plant up and running i.e serviced ready to re-start, whilst planning some changes to the process plant and ordering plant, so that when the permits came through they would be ready to go without delay. However delays to permitting co-incided with a big jump in prices of energy/plant etc and a re-assessment of the process plant plans had to take place. Hence further delay, some wasted expenditure and I guess, change to the operating permit application. Hopefully that turmoil has settled down and Gawthorpe will make progress rapidly especially with the Environment Agency.