Royal Nickel Corp. RNKLF

RE:Engineering study for a likely ore sorter future acquisition

[goldhunter11]

Pierre,
Thanks for the transcript.
Perhaps, Paul Huet wanted to be on the conservative side  when he mentioned removal of 20-30% of the tonnes that are uneconomica by an are sorter. According to NOVO (recent NR in link below) and other sources that I have mentioned in previous posts Bayhorse,...
https://www.novoresources.com/news-media/news/display/index.php?content_id=367
the removal rate of the "waste rock" would be greater than 50%. They even have a scheme to put the waste rock back into the mine as back-fill to reduce the environmental footprint. Paul Huet does not have to serach high and lo for relevant inf on sorter. Just talk to Eric and ES will put him in touch with Quinton of NOVO.
Using a sorter is an excellent way to increase the profit margin. RNC does not need to spend too much time doing analysis.
GH11
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pierreg wrote: Paul Huet about starting an engineering study for a likely ore sorter future acquisition. Advantages: Mill capacity freed up & increasing the grade, total ounces & revenue. Removing uneconomic tons. Shipping & processing less rock. @CRUXinvestor interview. November 16th '19.

The video: https://www.youtube.com/watch?v=eGbrQ7IVpOA

My transcript.

Paul Huet:
« We've initiated  an engineering study to look at increasing throughput in the mill. But we've also looked at other stuff. Technology has come so far in the last decade on ore sorters. It would be a shame if we didn't evaluate and explore that. If we put an ore sorter potentially at Beta Hunt where we can scalp off 20% of the tons. Freeing up that capacity in the mill. Increasing the grade, thereby increasing our total ounces. This is an ounce game for us. We have to get the most amount of ounces through that mill and that's gonna be very important to us going forward  […] the intent always the same put two year plan in front of that mill and behind the scenes doing some economic studies on ore sorters. Increasing throughput into the mill. So that's part of the big plan. Our goal is take it from 100,000  to 120,000 to 150,000. Systematically grow this operation. The more ounces we get the more money we make […] it would not surprise me at all that we could increase capacity at the front. It's really the bottlenecks at the front of our mill not necessarily at the back meaning crushing. So, fine ore bins, crushing and get that front end sorted out and increase that. It actually again, it makes a lot of sense to look at ore sorters. Ore sorters you can pick up for two and a half million dollars and that has the same impact. So, there's one option. So, an ore sorter can create the same amount of value for a payback much quicker. You put an ore sorter at the location, at Beta Hunt. You run all your feed, all of it through that ore sorter. It can remove up to 20%-30% of the tons that are uneconomic. You're shipping  80% less rock at $7 a ton. You're processing less rock $29 a ton. I freed up that extra space to put in higher grade material. So, those ore sorters are two and a half million dollars. The front end of the mill to make some changes three to five million dollars. Graeme Sloan might curse me on this. Because, I don't have the details of it.  I've done it a couple times in my life […] it comes from operations there's no need to go to a financing for something like that. »

CRUX Investor:
« You've set aside or allocated in your mind an amount of money which may allow you to  do this. Are you generating enough cash yourself to allow you to do this? »

Paul Huet:
« The first step is the engineering. We've got to be applauded for already starting it. We've just started this. We've done so much, Graeme, myself & the rest of the team. »