Good reportSome loose thoughts:
- The expansion was due to lower grade resource. At 0.091% MoS2 the tonnage was close to old resource estimate. This is as expected since drilling indicated somewhat lesser grades towards the borders of the deposit. However, it's all economic and enhances deposit value.
- They converted 1.4 billion tonnes to indicated extremely cheap. Some companies need to drill couple of hundred holes to achieve the same. This is great, they completely removed any uncertainty about the resource.
- They have about 2 billion tons at 0.055% Mo with by-products thats about 0.07% MoEq (not including gallium). (using Mo 14/lb, Cu 1.7/lb, Ag 9.5/oz ...)
- There's no internal waste. Most of the open pits suffer 5-10% grade decrease in reserves because of dilution, which MSQ largely avoids.
- Recoveries are 5-10% better than other deposits.
- Strip ratio is as good as it gets.
- Grinding was easy, no talc, clays or pyrite. Savings in reagent usage.
- Huge economics of scale benefits because of deposit size.
- Cumo has considerably lower cash cost after by-products. It can stand up to any other primary moly deposit on earth. Even the high grade Climax.
- I'm probably forgetting many things.
There are many deposits grading 0.07% Mo, but they mostly lack the other favorable parameters and they are 5-10 times smaller!
Final metallurgy study should be next. It has the possibilities to significantly add to the deposit value if more by-products can be extracted.
I'm pleased.