Realist2018 Realist2018
It is refreshing to notice that there are normal sensible people on this board contrasting the nonsense of other posters today.
I concur completely with your opinion about Westwater and think the production of CSPG will be the lifeline for that company and us shareholders.
You are correct in stating the ore grade at approximately 2.9% Cg is very low compared to other graphite companies and as a graphite mine producing concentrates only Alabama could not exist in the prevailing conditions. But the upgrading of the concentrate from $1,550 to $9,000 per tonne makes all the difference and makes the ore grade utterly unimportant. Even with a grade of 1% the end product will still make the company profitable.
Don Baxter realized the potential of the CSPG product and steered Alabama Graphite in that direction, consequently turning a graphite company into a so-called technology company. However, without a graphite concentrate as source material the end product could not exist. Purchasing concentrate from other graphite mines is not an option as all testing of CSPG is based upon Coosa material.
There are definitely advantages to mine the Coosa graphite. Coosa can be a long time provider of source material. Furthermore the capital requirements are a mere 43 million dollar. That is far lower than other graphite mines with ore grades of up to 16% Cg and a need of 160-170 million investment. As a matter of fact 43 million is considered a low amount in the mining industry compared to sometimes billion dollar mines. That Coosa is located in the USA is probably also a benefit considering the political conditions at the moment.
Your statement that a FS study is not required is debatable. You are correct that a FS study is not required by law in the USA as opposed to the situation in Canada. If an institution or private person is willing to invest 43 million it can be done without a FS study. Such a study, however, gives financial security to the lender, reason why banks or financial companies can demand a FS.
It depends therefore on the lender if the FS is required or not.
I appreciate your worthwhile contribution to this board!