GREY:RNKLF - Post by User
Comment by
marben100on Sep 27, 2018 2:47pm
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Post# 28703120
RE:From ceo.ca board
RE:From ceo.ca boardOre should never be valued on the value of contained metal alone.
A DCF model is needed to estimate the economic value of a resource. You have to deduct mining and processing costs, royalties, G&A and sustaining CAPEX and discount for the time it takes to mine and extract the metal.
An underground resource of 3g/t or less is unlikely to be economic (can be highly ecomonic when near surface and amenable to open pit mining) - as has been demonstrated by the Beta Hunt financial results to date. Things start to get interesting above 5g/t.
Selby's comment refers to the necessity of having ore above that grade. He hasn't yet said they've got it (except in relatively small amounts in the new discovery area), though he is hopeful, given the new geological model they're using.
RNX needs to demonstrate that it's got meaningful ore tonnage above that grade.