Pardon any errors, or my assumptions using the inferred as well as measured and indicated resouces. The Ruby Creek molybdenum deposit is larger than the pit contrained resource estimate. It is good to see Mine Development Associates using a little more conservative approach. Recall the 1970's bulk sample study that showed a recovery rate that recovered 15% higher than the indicated grade ....
Also good to hear that Stuhini is going to continue using MDA in the next phase of studies. CEO Dave O'Brien, stated in this latest interview that the company has enough capital to see the work through in 2022.
It was mentioned in the interview that the company's current cash balance is about $1 million. In an earlier intervew, it was stated that the costs for ongoing studies is roughly $50,000 per month. However, it would not be surprising to see another small capital raise in a few months time as in each of the past three years.
Using the numbers provided by updated resource estimate :
Operating cost per tonne (US$2.00 mining + $1.00 G&A + $5.00 processing) = US$8.00
Roasting cost per kilogram US$1.77 ....or ..... $1.77 / 2.2 lb/kg = US$0.805 / lb
I've made two calculations for a comparative to show the impact of the increased moly price..... one using the base case US$15/lb moly price in green and one using the current moly price of US$19.30 / lb in blue .
Value of ore per tonne with updated estimates using US$15.00 / lb
Value of ore per tonne using current trading price at US$19.30 / lb
2200 lb / tonne X 0.00053 = 1.166 lb / tonne of moly in situ
1.166 lb X US$15.00 / lb = US$17.49 / tonne of ore in situ value
1.166 lb X US$19.30 / lb = US$22.39 / tonne of ore in situ value
Recovery rate of 0.92% X 1.166 lb / tonne = 1.07272 lb
411,344,000 tonnes X 1.07272 lb recovered / tonne = 441,256,935 lb
Roasting costs of recoverable molybdenum
441,256,935 lb X US$0.805 = US$355,211,832
Using Measured, Indicated and Inferred resources of 411,344,000 tonnes at 0.02% cut off grade.
in situ value
US$17.49 / t X 411,344,000 t = US$7,194,406,560 at US$15.00/lb
US$22.39 / t X 411,344,000 t = US$9,209,169,472 at US$19.30/lb
US$17.49 - US$8.00/t operating cost = $9.49 / t X 92% recovery rate = $8.09/t net
US$22.39 - US$8.00/t operating cost = $14.39 / t X 92% recovery rate = $$13.24/t net
Using Measured, Indicated and Inferred resources of 411,344,000 tonnes at 0.02% cut off grade.
US$15.00/lb moly price
In ground value US$17.49 / t X 411,344,000 t = US$7,194,406,560
Operating costs of US$8.00 / t X 411,344,000 = US$3,290,752,000
Gross after operating costs US$3,903,654,560
Roasting costs US$355,211,833
Gross after Operating and Roasting costs US$3,548,442,727
Using $19.30 / lb moly price
In ground value US$22.39 / t X 411,344,000 t = US$9,209,169,472
Operating costs of US$8.00 / t X 411,344,000 = US$3,290,752,000
Gross after operating costs US$5,912,417,472
Roasting Costs US$355,211,833
Gross after Operating and Roasting costs US$5,557,205,639
US$820 million for mill, tailings and other infrastructure ..... so it should be a safe assumption that a similar CAPEX would be needed for development of infrastructure
at Ruby Creek.
The Ruby Creek moly deposit should be on at least a few base metals mining companies's radars ....... either for a buying the deposit outright with a Stuhini
getting a NSR, or bringing in a strategic partner for 19.9% of the company, as was
also mentioned in the interview from yesterday.
GLTA !