RE: RE: RE: Largo NEWS. ND resource increaseHi Ank. Have to dissagree with you on the grade thing......
This is VERY SIGNIFICANT.......
"Most importantly, the 2008 drilling program provided much better definition of the higher-grade zone which is estimated to contain a Measured and Indicated resource of 60.3 million tonnes grading 0.137% WO3 and 0.045% Mo (WO3 equiv 0.215%) and Inferred mineral resource of 5.4 million tonnes grading 0.134% WO3 and 0.047 % Mo (WO3 equiv 0.214%) at a 0.17% WO3 equivalent cut-off grade."
0.215% equivalent is about $45/tonne. With cash costs of around $15/tonne on diesel power operation that is very economic. That gives 8.5 years of operation on a 20,000 tpd mill before they get into the lower grades which are in the .17% Wo3 equivalent. They would be looking at about $200Million profit per year at current prices for the first 8 years. Mine payback in around 5-6 years.......
"The deposit now has a substantial measured and indicated resource that includes the higher-grade zone which could support a prefeasibility study."
I think at this point the main reason they will still deferr the scoping study is the cost, because in the current market conserving cash is key..... A positive feasibility study in this market will give zero benefit so its better to wait until things improve before outlaying the additional cost for the SS....
Did you see NTC news today. Very high grade holes once again.
lurk