RE: RE: No scoping study in April
The scoping study will include PEA or preliminary economic analysis, and this requires 43-101. Traditionally, this is not needed, but RGX plans to have an accelerated program for production, and skipping both preliminary feasibility study and feasibility study, and go directly into production, and thus needs 43-101. Rest assured the results will be positive because RGX management is doing engineering right now, which is supposed to be done AFTER the PEA is positive. So, going through the PEA provides the market an objective answer from independent 3rd parties (without preliminary feasibility and feasibility studies), but we already know the results will be positive. One clear factor is that we used the cost that will bankrupt 95% of all gold companies, 100% of pure iron companies, and 95% base metal companies, and we already know the cost is LOW, as openly stated by RGX management.
Did you see the illogical aspects of these? On one hand, we used the highest cost for estimation (assuming RGX will use the old technology with the worst possible cost), but at the same time, we were told that the process has a very low cost and is revolutionary. This is what we have done so far, we assume the worst case but we know we are deadly wrong on our estimate as our cost estimate is too high. But even with that kind of estimate, RGX will produce these metal at 50% cost (comparing to KRO's 75% cost). So, even if our original estimate is wrong (the RGX process turns out to be expensive rather than low cost), it is still highly profitable for RGX. Thus, I fully expect that the scoping study will be positive. Let them take their time to do the study, but the results will be positive anyway.
I did another calculation based on recent metal price, and each tonne is about $800US, taking away .90 recovery rate, we still have $720 per tonne revenue. If we take 50% cost as told by RGX management, the processing cost is staggering $400 per tonne, enough to bankrupt 99% of all mining companies except perhaps few REE companies.