Porvenir grades7 Dec 2020 22:18
theIceberg and Hydrogen - if you're reading this, your perspective on the quality and volume of this resource. would be appreciated. [Ideally in laymans terms!].
But for outsiders like me, this is what I have learnt:
Firstly - Cu grade (%Cu).
"...Exploration companies estimate grade through drilling and assaying. The average grade of copper ores in the 21st century is below 0.6 percent copper, with the proportion of ore minerals being less than 2 percent of the total volume of the ore rock.
Investors should approach grade estimates with a critical eye. When an exploration company issues grade statements, investors should be sure to compare them to the total depth of the drill core used to determine the grade. A high grade at a low depth can have far less value than a mediocre grade consistent through a deep core. Corebox is a great tool for keeping informed.
Mining costs
The largest, most profitable copper mines have been open-pit mines, although underground copper mines are not uncommon. Of particular importance in an open-pit mine is a resource that is relatively close to the surface. Mining companies are particularly interested in the amount of overburden, which is the amount of worthless rock and soil on top of the copper resource. This material must be removed to access the resource. Escondida, mentioned above, has a resource that is covered by a large amount of overburden, but the deposit is still economic due to the large size of the resource beneath...."
https://investingnews.com/daily/resource-investing/base-metals-investing/copper-investing/types-copper-deposits-world/
Secondly - Copper Equivalent grade (%Cu Eq).
https://marketcap.com.au/about-equivalent-grade/
My overall take on this is that a Cu grade <0.5% is 'low' grade. Over 1% is high grade.
As important of course, is the overall volume. Low grade...but loads of it, is very economical.
High grade in small pockets is not.
The two RNS' from Porvenir (IMO) appear to be low grade...but an enormous amount of it?
Views? Comments appreciated.
Z
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