EXPM:QRMLF - Post by User
Post by
Ricktheveton Dec 10, 2010 12:43am
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Post# 17827660
Water man
Water man
Thinking is quite straight forward actually. If you are going to spend 200 million building a road and pipeline and 200 million to build a mill and extraction facility you need a long term mine life and a large yearly cash flow to be able to amortize these costs. If it were a very high grade system but much smaller it would not be economically feasible. It is exactly these questions and scenarios that are addressed in the PEA and which will be addressed in finer detail in the full economic assessment.
Personally I like the idea that these costs can be amortized over a mine life of 50 - 75 years. By then a 400 million start up cost will be peanuts and REE's will be trading at 4x-5x their current value. This deposit is the sort where multi generation miners may work.