Member Info for Valuation-it-is

The CUSN presentation slide does not say it, but I wonder if CUSN has sold an EXCLUSIVE right to Cornish Lithium to explore for Lithium in Brine on its miineral rights areas. If there is not an exclusive right granted then presumably others could search for Lithium too?

Great News. I wonder what the initial level of subsidy will be? This could be a game changer. If one of the three major revenue streams for DMG is going to be underwritten by HMG, the proposition put to banks for DMG build funding purposes will be considerably enhanced. It would have been difficult to persuade banks of the market for hydrogen perhaps, easier for electricity and perhaps heat, so to have HMG as the long stop buyer of hydrogen will help considerably.

It is inevitable that pieces of the jigsaw are put down at different times. Lithium for instance seems likely to be produced in Cornwall in 3 years time, so meanwhile that has to be imported.

pawgee 19.39

On day two there is a proposed site visit to South Crofty. Doesn't sound to me as if it is confirmed yet but I guess Owen Mihalop would probably address the visitors. The other site visit on day 2 to Great Wheal Vor is also described as possible, so I am not sure whether that is definitely on or not. I am thinking of registering interest and then seeing what is firmed up before I splash out the £150 for the two day conference.

A 500,000 purchase at 15.58, and another 200,000 at 16.35, taking advantage of the dip in price.....................

MajorOak
Are you excited by the prospect of Lithium extraction from the China Clay waste tips (Cornish Alps) ? It seems the material is already mined, on the surface and already crushed. Cornish Lithium seem to be building a pilot plant to process it and my guess is that the cost of production will be very low. When I spoke to Jeremy Wrathall recently, I got the impression that it would be this rock processing that would take place first, followed by brine a couple of years later. Perhaps the plans have changed.

CK I think MajorOak is referring to the saving in drilling if one starts at the bottom of a shaft so Dolcoath would save 3300 of the 4950 feet (1500 metres) that MajorOak refers to. Question in my mind is would the drilling rigs capable of drilling down another 1650 feet, fit into the bottom of such a shaft?

https://cornishminingconference.co.uk/

Major Oak 7.55am
" lets see if there is a rush to get hold of CUSN shares before C L announce listing and the CUSN deal kicks in"

I would like to query what you mean by the "CUSN deal"...................
Are you anticipating that there will be a another deal between CL and CUSN just before CL floats on AIM?
Do you think that CL will offer shares to CUSN in exchange for dropping the royalty payments or the annual fees?
Or are you referring to the existing deal, whereby CL will pay CUSN royalties based on Lithium and electricity produced, which may start after finance has been raised and the plant built? (see below)

To re-cap, the CUSN presentation stated re Cornish Lithium

"The Cornish Metals Pre IPO presentation states:-
----------------------------------------------------------
Lithium exposure through Cornish Lithium
Cornish Lithium has the right to explore Cornish Metals’ mineral right areas for lithium-in-brine & geothermal energy. Cornish Metals has a 25% free carried interest on the first project advanced to completion of a Bankable Feasibility Study within its mineral right areas, and a 10% free carried interest on all subsequent projects advanced to completion of a Bankable Feasibility Study.
Cornish Metals will receive a 2% Gross Revenue Royalty on all metals produced from brines or geothermal energy produced from within its mineral right areas.
From January 2017, Cornish Metals benefits from annual cash / share issuances from Cornish Lithium of US$50K per year in years 1-5, US$100K per year in years 5 –10, US$500K per year from year 10, and US$1,000K per year from year 15.
Refer to Company news release dated January 19, 2017 for further info. "

https://www.mining.com/value-of-battery-metals-in-new-electric-cars-already-beyond-2020-total/?utm_source=Battery_Metals_Digest&utm_medium=email&utm_campaign=MNG-DIGESTS&utm_content=value-of-battery-metals-in-new-electric-cars--already-beyond-2020-total

This happened before I invested but was it not the case that PHE granted an exclusive right to W2T for the UK, which caused difficulties when Peel emerged on the scene as a buyer in the UK? I think that PHE had to buy W2T to resolve the situation, which may have caused dilution to PHE shareholders.
If this is indeed the case, why would PHE go down the same route again of selling an exclusive licence to HUI?
Would the presence of HW in both W2T and HUI have anything to do with it?
Did TY sign off on this deal before he left PHE? Who were/are the shareholders of W2T and HUI ? Is TY one of them?
So will PHE have to buy out HUI's rights in the future? At what price?

I do not understand this:-
"TPI considers that full integration of Waste2Tricity...might enable the capital-light Group to start generating returns" extracted from thissentence of the TPI report.............
"Considering the lengthy existing project pipeline already under consideration by Peel, together with further fees from expected feedstock testing and site-specific engineering work, TPI considers that full integration of Waste2Tricity Limited following its acquisition at the end of June 2020 might enable the capital-light Group to start generating returns for shareholders within the next two years, based on its expectation that HUI will also contribute to the Group having three fully operational sites plus a further four under construction by that time"

Is W2T not fully integrated already? How will "full integration" change things such that returns can be generated?

Any thoughts welcome.

Major Oak "What would be the price of the land just based on access and royalties to CUSN as this is Cornish Lithium headline project ?"
CUSN do not own the land, but does own the right to explore and extract minerals under the land in the United Downs(UD) area. CUSN has contracted with Cornish Lithium(CL) such that CL can explore for and extract Lithium and other minerals from Brine at UD etc, in exchange for annual payments plus a royalty on Lithium extracted and electricity sold to the grid, plus a free carried interest of 25% for the first bankable project and 10% for subsequent projects, up to a certain stage of development. I suspect the annual payments have been made in the form of shares in CL, which might explain the holding CUSN have in CL.
CL's potential extraction of Lithium at UD ,will be via brine forced up from acquifers at depth. CL's other aim to extract Lithium from hard rock at Trelavour does not involve CUSN's mineral rights or CUSN.
CUSN meanwhile is exploring the possibility of a Copper/Tin/Silver resource at United Downs which would be mined conventionally, probably via the existing Wheal Maid Decline - although that has - as far as I know- not been re-opened yet.
CUSN's major asset is the resource at South Crofty, which is about 7 miles away from United Downs.

Apologies if this is stuff you already know, but it seemed to me some misunderstanding may have occurred.

For those interested in the planning application submitted a week ago, the reference number is PA21/08673 . 4 Documents are available.

CK Most helpful post - thanks. Not only is the average of the 10 you mention $535/tonne, ( dragged up by one v high reading) it appears 5 of the 10 on the list fall above the minimum ($250/tonne) you consider viable, so is the jury still out so as to speak, with more drill results needed to know whether it is worth going ahead?
Do you have a rough estimate of how far the (5)intercepts are from the WMD?

Re the issue on the width. Please correct me if I am wrong, but if the width mined is greater than the width of the lode, then presumably the sorting machines just have to reject more. So will it be a case of assessing the value of mineralisation to be recovered vs the cost of the volume of actual mining?

https://www.dailymail.co.uk/money/markets/article-9935533/Britains-car-firms-brink-golden-age-electric-investment.html

Lord Grimstone visited South Crofty a few weeks ago............................. The UK needs to organise smelting next......... A site in Plymouth might be our best bet.

CK thank you for your post, which makes for very positive reading.
So a chance of a huge increase in resource, AND a much earlier date by which mining could start.
If approval is given the drilling program commencement is expected to take place in late 2021/early
2022. More to look forward to................

CK - that is great information, thanks. Any idea how far that would be from already indicated/inferred resources, so we can have a stab at what it might mean if successful?

Major Oak interesting post - thanks
This part of the text caught my eye see below. I wondered why Cornish Lithium forsee a start on the rock project before the brine project? I guess it is because they have millions of tonnes of already mined/crushed china clay waste ready to process..

"... The subsurface brines are nowadays the dominating raw material for lithium production, as a result of their lower production cost and simplicity in processing when compared with the mining and processing cost for lithium ores (Hien-Dinh et al. 2015a;Jandová et al. 2010;Siame and Pascoe 2011). On the other hand, minerals could be considered as a sub-economic resource of lithium if its price, as well as its demand, continues to increase (Yan et al. 2012). ..."