RE: New Presentation- CalifYour observation about 2% cutoff is interesting.
As I understand, it is mining convetion that you mine it if NSR value is double the cost of mining+ milling etc. One may mine below this parmeter if there is no marginal investment involved or there is no higher grade resource left to squeeze the last ounce of juice.
2% Zn would be 44 lb ~ $60-70/T ore value. I think their mining cost is in that range only. That would make it unviable to move cutoff to 2%.
Having said that, moving to 3-4% would make sense and provide some room for expansion of economic resource. That understandably would be decision when end is near.
That is at the current price. Near the end of the R190, production depletion would kick in changing the parameters.
At current Zn prices, we may expect 3-4% cutoff. At $3 Zn, 2% cutoff.
And is $3 Zn outrageous thinking? As Marc Faber says, price of everything including art, Dow, Gold, your carpet, your belt and shoes will go up.
Cheers!!