Grid Metals Corp V.GRDM

Donner update

[Mookster3]

    Chart below provides updated Donner-Snow Lake comparison using the Primero Engineering values for Donner released yesterday, the lower current spot price of spodumene concentrate (US$ 2110/t @6%) and 70% recovery rate provided by Primero. Note that during the first 5+ years of open pit operation at Donner, mining costs will be lower than indicated below and fleet costs should be lower due to lower production rates compared to Snow Lake. Margins remain very healthy even at the lower Li price.
  

		Donner (Tanco mill)	Donner (True North mill)	Snow Lake
Tonnes (mm)		6.8 (2.1 open pit)	6.8 (2.1 open pit)	8.2 (0.6 open pit)
Grade % Li2O		1.39	1.39	1.1
Li2O (mm kg)		95,000	95,000	90,000
	Initial Capital Costs (US$ mm)
Pre-production1		19	19	19
Mining fleet1		32	32	32
Ore sorting1		7	7	7
Mill		nil2	572	42
Road1		1	1	1
Power line		nil	nil	18
Bridges		nil	nil	15
Closure Costs		10	10	10
Total capital costs (mm $US)		$69	$126	$146
Operating Costs
US$/t mined1		33	33	33
Ore sorting ($/t mined)1		2	2	2
Mill processing ($/t milled)		263	31.53	16
Transport ($/t milled)		304	304	15
Admin ($/t milled)1		135	135	2
Total (US$/t milled)		104	110	68
Revenue
Li2O @6 % (US $/t)		$2130	$2130	$2130
Gross $/t milled @70% recov		$345	$345	$273
Net $/t milled @70% recov		$241	$235	$205
Milling rate t/d		5006	12307	2500
Revenue  ($US/yr)		$63 mm	$155 mm	$249 mm
Cash flow ($US/yr)		$448 mm	$106 mm	$187 mm
Market capitalization (US$)		$13 mm	$13 mm	$20 mm

1) Donner costs assumed the same as Snow Lake
2) Includes total lease payments to 1911 Gold over 10 yr period ($7mm)
3) Milling costs provided by Primero plus US$5.50/t toll milling fee paid to 1911 Gold
4) Transport costs assumed same as Snow Lake plus $15/t for ore transport to True North (82km) or Tanco mills.
5) Admin costs provided by Primero
6) capacity of Tanco mill
7) Milling rate provided by Primero
8) Grid’s share of 50/50 profit split with Tanco = US $22 mm/yr