Resource at La Blache much larger
I wonder any one who reads the recent PR carefully again? I did.
"NI 43-101 compliant resource estimate including: 30,888,000 tonnes measured
and indicated and 13,013,000 tonnes inferred resource estimate grading >44%
iron (63.36% Fe2O3), >11% titanium (18.67% TiO2) and >0.24% vanadium
(0.43% V2O5)."
Read the old PR again:
"A ground magnetic survey was completed by Prospecting Geophysics in 1959
(GM08681). Bersimis Mining completed 20 drill holes in 1964 (GM15462, GM15667
and GM15992) intersecting significant iron and titanium (more than 45% Fe and 15%
TiO2.). The MRNFQ examined approximately 300 metres of drill core sampling holes 4,
7, 8, 10, 11, 13 and 17 as well as two outcrops for petrographic and chemical analyses.
Three lenses were identified and were apparently aligned over a distance of 6 kilometres.
The lenses vary from 100 metres to 1,130 metres in length and 45 metres to 215 metres in
width (RG2002-01 and GM37408). Geochemical analyses tend to be consistent from one
lens to the other (GM37408) averaging 50.4% Fe, 20.1% TiO2, 0.36% V2O5, 0.70% SiO2,
7.41% Al2O3, 1.26% CaO, 4.05% MgO 0.19% Cr, 0.03% P and 0.02% S."
Did every one see the difference?
The historical data said AVERAGE, but the new PR said ">". Thus, anything less than 44% iron, 11% titanium, and 0.24% vanadium is removed!
So the cut off in the new 43-101 is TOO HIGH. Let me illustrate this. Suppose, i have a core of 43% iron, 10.9% titanium and 0.23% vanadium, the core is considered no value by the recent 43-101 as it does not meet the cut-off criteria. How much money do we have in a ore body of 43% iron, 10.9% titanium, and 0.23% vanadium? $600 maybe per ton. But the 43-101 said ZERO because it does not meet the cut off criteria.
As we lower the cut-off, the resource will increase as more ore will qualify the cut-off. But what kinds of grades do we need to be profitable? Probably 50% will be enough, or even 25%. Other TiO2 companies are producing at 2% TiO2 grade, or about 10% of RGX's grade and they are profitable.