RE:RE:RE:Molybdenum Prices Continue Strengthening thoughtsonthis.
You are not missing anything. The main issue is the fact that the Ruby Creek moly deposit requires an update to make it 43-101 compliant. If / when the company gets the resource updated to current status, the management team will then be able to more fully discuss the known historic data of the moly deposit with shareholders and potential investors.
I'd be more inclined to look at the possibility of Stuhini selling the moly deposit, for instance at 1.0% of the current in-gorund value ...... so perhaps $115 million / 24 million shares = $4.80 / share
There are copious amounts of data publicly available for all the previous work done by numerous operators that was incorporated into the last operator's data, Adanac Molybdenum Corp., which completed a Feasibility Study in December 2007, as well as issuing a later resource estimate in May 2009.
https://secure.kaiserresearch.com/i/jk/tr16/TRAUA20071201.pdf According to the 2007 Feasibility Study for the Ruby Creek Project, the mill and pre-production was expected to cost approximately C$640 million..
The following points were noted on page 9 of that feasibility study
MIne Life : 21 years
Milling rate : 23,000 tpd
Strip ratio 1.11 tonnes of waste :1 tonne of ore
Tonneage milled : 157.6 million tonnes, average grade 0.058% moly
Molybdenum in concentrate : 81.7 million kilograms
Pre-production Capital ; $C640 million
Average Operating Cost : US$7.60/lb for first five years of full production
and US$7.99/lb afterwards
The issue here is that those cost estimates were competed 14 years ago, and are out of date.
Capital costs will be higher for building a mill ..... but how much higher ? Operating Costs will most likely be higher due to inflation. Was the mill and pit design optimal or was Adanac Moly more concerned about getting the project rushed into production to take advantage of the then high price of moly before prices collpased from US$34.00 / lb
Any company looking at buying out the Ruby Creek project would want to know these data points if they wanted to make a offer to Stuhini to purchase the Ruby Creek Project.
The 2009 Resource estimate showed improved potential. Is the deposit still open for futher expansion ... ???
https://globaldrillingsolutions.ca/wp-content/uploads/2017/06/Global-Drilling-Resource-Update-2009.pdf Go to Appendix A at the end of the report and have a look at some of the 2007 and 2008 compiled drill results .
Is the deposit potentially open for a larger resource...... Who knows for sure, that is one reason a new technical report needs to be completed to provide recommendations to the company on what their next course of action should be going foward.
You may also find some intersting reading in the May 30, 2008 Condemnation Drilling Report
https://aris.empr.gov.bc.ca/ArisReports/30306D.PDF It was good to see Eric Sprott once again participate in the latest financing of $2.3 million when he bought 500,000 additional shares to add to his position in Stuhini.
Buying into Stuhini may require a little bit of patience, as the company also works on the gold and silver potential of the Ruby Creek property, as well as determine if they should spend the money to get the historic moly deposit updated. You may also want to check out Stuhini's recently acquired Manitoba properties for a potential nickel deposit.
GLTA !