RE:RE:RE:RE:RE:RE:RE:RE:Fundamental Researchmuchogusto wrote:
Thanks LeMarcus for your very detailed answer. Its great and not often seen to have such high quality board discussion. I really believe in that Management Team with this serious record in the mining business.
Regarding your Option A:
A)For one thing, now that we are getting experience in the silica Field, getting a mining permit instead of surface mineral( quarry) could be a safe option to grow the business. All depends on how the other stakeholders and infrastructure could support additional volume. But surely there is additional volume potential within a 2-3 years window for silicon ridge. That could be a first project right there.
Still in the silica business, we could certainly acquire undevelopped silica assests and or target more high value product.
Do you have had discussions or facts on the hand what area in Quebec is the most prolific one for Silica? At the moment there is(was?) a hype about Lithium and Graphite and a lot of companies trying to add some kind of promising land to the portfolio.
I would really appreciate it, if RRS will have the focus straight on the Silica development and expansion.
GLTA
Quartz is very abundent, but formation of concentration/purity/continuit of "La Galette Formation" is quite impressive. Nevertheless, the important factor in a mineral like raw quartz of 98% + are infrastructure, cost structure, climate and proximity to market and great logitics.
Quartz market is very opaque, so its difficult to define what could be a great location. For sure, low cost to be "seaborn" is great for selling into coastal markets.
But you can see that "volume and prices" for lumps doesn't make it a very "large scale" project.
So you wouldn't want to invest 10M$ to develop an assest that is not in the 10M+ tons of end products with less than 50 years life of mine. The key is to define huge ressource, with potential to extend resources(defined) in a 20/25 years cycle. You would be looking for lowest waste/ore ratio, as much surface mineralisation as possible, and as much continuity of trend as possible.