RE:Forward ThinkingThe answer to your question about a concentrator is actually right in the Nova NR. Note they are talking about shipping to Shawinigan. There is no concentrator at Shawinigan, it is 'way up in the boonies at the mine site. You can safely infer that the ore has to be concentrated first in Snow Lake before shipping to Shawinigan. FAT will be able to justify a go alone mining operation as the tonnage will support after they drill it out. However, a shared concentrator with Nova would be hugely beneficial to both to share the capex.
LongShot2017 wrote: From the latest NR from Nova Minerals, the goal of the meeting between the three parties Nova/Ashburton/Far is to optimally develop the region and how best to unlock a world class lithium district. I'm trying to wrap my head around how it's all going to unfold. Forward thinking.
The NR mentions nearby rail access to Quebec's Nemaska's Hydromet Hydroxide Plant where the spodumene concentrate (Li2O). Here is where my questioning comes in... To optimally and in an economically viable way to ship to Nemaska is a crusher + concentrator required at the mine site? I'm thinking all that bulk hard rock is costly to ship and brings down price per tonne, If the answer is yes, it's obviously beneficial to have one concentrator plant built (or repurpose an old one) for an entire massive consolidated land package because it's no doubt millions in cost. It's more appealing/econically viable for a major to invest in an initial capital cost if it purchases all land there. FAT's land can possibly justify such an expense but can Nova/Ash? Nova/Ash needs FAT to make this happen if my logic is correct.
Next, before any mining operation can actually occur a feasibility study needs to happen and before that pre feasability study to determine if it's economically viable. The numbers aren't good to look as good for either FAT or Nova but together we can entice a major with greater success and obtain more coin. Lifetime or the mine and total tonnage goes way up in a JV. This will help ofset the cost of starting the mine + concentrator plant.
Before any of the above needs to happen drills need to infer resource for the pre feasibility study. Before such a massive winter drill program needs to occur we need to know where to drill. That's where surface sampling comes in. Note: Both Nova/Fat have been collecting hundreds of samples for months now. We just need the lab results to know where to drill. Timeline of the drill campaigns, I'm thinking we should know results Q2 2018. Maybe a potential suitor/major will sponsor the costs of drillings for both parties, who knows!
Fellow poster Wilwal nailed it when he said we need to know how much possible resource each company holds before a definitive agreement can be met. Otherwise one party gets an advantage and the other a disadvantage, no one is that dumb especially these guys.
TLDR (too long didn't read): #1--drilling campaign, #2--inferred resource from both companies, #3--pre-feasability study to determine econimic viability + profit, #4--get bought by major, #5--going to Jamaica for 2 weeks to spend some cash and look for the next play.
I don't really know what the hell I'm talking about and just thinking out loud here so please help me shed light on what may happen folks!
-Longshot