GREY:ADEXF - Post by User
Comment by
Greenandgold.on Oct 21, 2011 11:13am
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Post# 19169949
RE: Prefeasible or Bankable?
RE: Prefeasible or Bankable?Oceanic Iron Ore is also a good comparison. At their Hope Advance property they've drilled a bunch this year, yielding 358 million tonnes indicated and 872 million tonnes inferred, with 70 more holes to drill this year. They have a PEA, and plan to release a "pre-feasibility" study in Q2 2012.
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If AXI hasn't moved a lot of tonnes at Roche Bay this summer into higher certainty categories (at least "measured"), it would be most appropriate to call the upcoming study a "pre-feasibility" study. Companies do sometimes fast track projects, jumping from the scoping study (PEA) to the bankable feasibility study, but this involves a lot of work that hasn't been done at Roche Bay.
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The drilling isn't just a formality. If the mine's going to be an open pit mine, then engineers need to know how to design the pit. They need to know exactly what the mineralization looks like, and all of its unique characteristics. The only way to do this is to do a lot of definition drilling.