RE:RE:RE:RE:RE:RE:Cu and - Zn is the appeal -- for suitors thorgb1 wrote: StewartCatso wrote: Stewart, why in your opinion did Freeport maintain 54% of the LZ if as you say it is technically challenged? Freeport pretty much wrote the book on caving and they know as much as anyone about this deposit, so I don't know why they would want to maintain their significant stake in a massive deposit if they didn't think it would be a viable, Freeport-sized mine for them in the future.....
Read more at https://www.stockhouse.com/companies/bullboard?symbol=t.nsu&postid=26525451#IhhMkJJKoYxs6vHX.99
It costs them nothing and allows NSU to do some earn-in work.
Incorrect. There is no earn-in on NSU's part for the lower zone. On the contrary, Freeport can increase their holding on the lower zone to a maximum of 54%. In terms of funding further exploration, NSU is on;y on the hook for the first $20M in drilling costs, after which Freeport assumes 72% of costs, so again, it does not "cost them nothing". So again, why would Freeport want to maintain the LZ, and indeed structure the agreement is such a way that they would be in a position to hold a majority position and as such most likely become the operator, if it was not technically feasible to extract the ore?
thorgb1,
I do not have the details of the boardroom deals that are made, and I am sure you don't either. What I do know; however, is what is available to the public. Having said this, this is what I know...
Based on the original JV agreement (Freeport "Earn-in") "
No further funding was required by Reservoir until delivery of a Bankable Feasibility Study (BFS) by Freeport"...
Now this is the hard part, because unlike yourself and Rob926, I was not an shareholder of Reservoir and really did not know much about them until mid-2016....The Right of First Offer
ROFO changed the structure the Timok JV ownership where Reservoir gets 100% of the UZ and the Lower Zone is divided in ownership; where, Reservoir (now Nevsun) owns 60.4% with Freeport-McMoRan Exploration Corporation (Freeport) holding the remaining 39.6%. Upon completion of a feasibility study, Nevsun will indirectly own 46% of the Lower Zone and Freeport will indirectly own 54%...But here is the hook, Nevsun needs to fund $20M
before Freeport has to complete their "Earn-in" portion to bring their ownership to 64%. So please re-read my response...
"It costs them nothing and allows NSU to do some earn-in work." Freeport was in financial dissarray, so they somehow got a financial repreive and will have an opportunity to get a "free" look (or better look) at the LZ before deciding to
commit to this project further.
and meanwhile back at the ranch... My comment(s) "Althought the grade appear good; it
may be technically not feasible to mine via caving methods because of the depth of the deposit (>1000 meters below sea level
and >1400m below surface) due to excessive stress and the technical challenges caving at theses depths."
Did you review the caving information provided? I am trying to benchmark Timok against other caving operations around the world to compare their extraction level depths to the potential final depth of extraction at the Timok LZ.
Timok would be the deepest block caving operation (below sea level) and the deepest blind caving operation anywhere on this planet. With this information and with some personal information on mining I am suggesting that the Lower Zone is technically challenged below the stated depths of >1000 meters below sea level and >1400m below surface.
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