Post by
Wangotango67 on Aug 13, 2022 10:55pm
WESTERN STYLE
Though Korabs journey + timeline makes a wonderful story,
the dilution cancels the excitment.
What comes to mind when i think of Korab ?
Western Magnesium.
I'm left without " clue " as to where they'll recieve thier feedstock from ?
The majority of pres releases speak of the success of the magnesium purity via pilot plant, and the aim to build a full scale - 100,000 tonne mg metal plant in Ohio, usa.
Western began in Canada, and is now stationed in, WA usa.
As mentioned, expectant metal Plant in, Ohio.
Ohio makes an interesting story...
A state that has opened it's doors to such a metal producing plant, and a state that is " hub like " in location - stategically positioned close to - usa auto industry.
Feb 25 2022
Ohio’s Electric Vehicle and Battery Industry:
Accelerating Ohio’s Auto Industry
https://kjk.com/2022/02/25/ohios-electric-vehicle-and-battery-industry-accelerating-ohios-auto-industry/
What's missing with this - Western Magnesium - storyline ?
Where wil lthey get the feddstock ?
lol
I've sifted a few press releases and- nada.
Can't find anything.
The horn they " toot " is made in America for Americans.
Yet... wil lthey source their magnesium from America... or source from Canada, andrest on the
laurels of, manufacture Mg metal in America ?
You know...
product comes from elsewhere and melt it in America to stamp it, American.
I could just imagine the dilution they'll incur to finance this100,000 tonne plant.
One vidoe mentions - potnetial other plants - but... let's se ethis first plant built.
WHAT WOULD SOLVE - WHY + XMG'S - PROBLEM ?
Yup... i would love to see each junior recieve 50,000 / metal tonne contract each.
Fulfilling Western's capacity to meet 100,000 metal tonnes.
Which would mean if a deposit is, 43% grade, minus the carbonates, the tonnage
would be far larger to accommodate or meet the conversion rate of adjusting a Mag Carb ore to
metal end product.
If ever... ( hypothetical )
Such wouldn't be a wicked dilution for each small junior, compared to flipping the bill for a - plant.
blast,crush, and the what if an ore sorter was employed prior to a small float pllant to limit the imurities ? But then again, if Western is using a furnace, muchof the impurities would be skimmed in slag.
This post is not suggesting " at all " that xmg or why will ever pair with western for a feedsotck...
But ya know what ?
They should be.
It would be a simple fix for each junior.
A low cost solution - dig,scoop, sift a few imuprities out, ship by rail.
Biden, has apparently...
set some funds aside for sprucing up the RAIL infastructure.
Biden's $2 trillion infrastructure package has two provisions involving passenger rail: $85 billion to modernize public transit (commuter rail, buses, stations, etc.) and $80 billion to improve and expand the nation's passenger and freight rail network.
link -
https://www.npr.org/2021/04/06/984464351/as-biden-pushes-major-rail-investments-rail-amtraks-2035-map-has-people-talking
I don't know shareholders...
This would certainly be a solve all, for two canadian mag juniors.
But... i just don't know.
It would take a significant up front cost out of the picture - similar to Korab's original plan, to ship ores to third party - where they prfit from the mag metal. prices.
Where the smarts would be ? ( hypothetical )
Formulating a feedstock deal that's framed on " float prices " dependent on inflation.
No locked in contracts that place miner in a crux to supply feedstock.
Which would benifit the - feedstock supplier - and ensure the mag metal maker always gets it's feed.
Far easier to play with mag metal values with more profits than screw the ore supplier - shifting dollars back to the supply stream, essentially offerting top dollar to the ore supplier - via - toll kick backs - oh.. hello.
If they could ramp the concentrate ore value to say.. .$1,200 - $1,500 cdn
Such would be ideal.
Mag metal producer flips the bill for rail delivery.
Western moving stateside -
would benifit them - with usd purchasing power while candian ore supplier would also benift recieving usd. Current exchange rates are - 28%
Again... wish i knew where Western will recieve thier mag ores from.
I just don't know.
Sorry for the extra post...
But after reviewing Korab's story..., first thing that jumped in my mind was...
What about Western - where will they get their feedstock ?
Cheers...