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King River Resources Ltd T.KRR.W


Primary Symbol: KRCLF

King River Resources Limited is an Australia-based exploration and mining company. The Company operates through two segments: ARC High Purity Alumina (HPA), and Exploration and Evaluation. ARC HPA Project segment develops the ARC HPA process and precursor compound to produce HPA. Exploration and Evaluation segment is engaged in exploration and evaluation activities of its gold projects in Australia. The Company’s projects include Rover East Project, Tennant Creek East Project, Barkly Project, Mt Remarkable Project and Kurundi Project. The Mt Remarkable Project is located 200km southwest of Kununurra in the East Kimberley, Western Australia and covers over 2,100 square kilometers of adjacent and/or nearby granted exploration licenses. The Tennant Creek Project is located to the East, Southeast and South of the rich historic goldfields of Tennant Creek comprising gold-copper exploration leases and applications measuring some 6,000 square kilometers.


OTCPK:KRCLF - Post by User

Post by Farquaron Oct 15, 2021 4:52pm
291 Views
Post# 34012067

The Beta Hunt ramp can handle 960,000 tons/yr

The Beta Hunt ramp can handle 960,000 tons/yrIf Krr decided to use ramp #1 exclusively for nickel ore and if Karora proves out enough nickel , we could see enormous profits on the sale of their nickel nitrate...(960k nickel and maybe squeeze in 50 k of gold ore because there's lots of gold next to the nickel ore) Here's a best case scenario: krr proves up a large nickel deposit at say 4% nickel for 300,000 tonnes of nickel. They sign a contract with BHP to handle the 960,000 tonnes of 4% nickel ore/ per year. ( As of right now, I believe BHP still has 1 million tonnes of capacity available for rent)..The 960k ore x 4% = 38,460 thousand tonnes of nickel production in one year. If the average nickel price is 20,000$/t , then 38,460 x 20,000$ = $768,000,000.00 US gross sales x 70% net after accounting for AISC = $537,600,000.00 US profit or $666,624,000.00 cdn profits 160 million shares = $4.16 cdn/share....BTW, this calculation is estimating AISC at $6015 US/t, which is probably way too high considering how high the grade is but just using what I consider as conservative numbers plus the fact I am totally ignorant of the actual AISC...If the AISC was 4000$/tonne , then add 95 million$cdn profit to the already $666 million profit and so you would arrive at $761 million cdn profit or $4.75 cdn/share... A deposit of 300,000 tonnes could support this yearly production for almost 8 years....Karora's neighbor, Mincor has about 250, 000 tonnes proven nickel @3.7%, but really has multiples of inferred @ 3.8% nickel, so it is by no means an exaggeration to believe that Krr could eventually prove out 300,000 tonnes of nickel, as Mincor has 10 times that amount @ 3.8% nickel.. The next few months or couple of years is going to reveal the full extent of krr's nickel potential...Right now, they have enough gold outside of beta hunt , to not need that ramp until the second ramp is ready , whereby they will be able to use it exclusively for gold while simultaneously using ramp #1 exclusively for nickel...Add to this the almost certainty that they are going to produce 200,000 ounces of gold within 2 years or so and we are talking about an incredibly profitable junior mining company here... Maybe the share price will be 90$/share by then, who knows?...In a world where worthless bitcoin is valued at 60 000$US a virtual coin , it would not be hard to imagine Krr's share price being in the 100's even....But, as I said at the outset, this is a best case scenario calculation, somewhat a bit out there, but in reality a real possibility...One more thing, Jim Sinclair mentioned that when gold hits 3500$/ounce, Canada and USA and presumably Australia would nationalize all the gold mines but will Canada or Australia nationalize all the Nickel mines? I think not....So, if Krr establishes themselves back as a predominantly nickel producer, perhaps they will avoid that whole nationalization business altogether...At that point maybe all these non-gold mining companies that have some traces of gold but are not gold mining companies ( Karora ?) can sell their gold back to the government perhaps at a 10 or 20% discount to the freemarket price but nevertheless still make incredible profits if gold is trading at say 30,000$/ounce or something like that....Anyways, this nationalization of gold mining companies is yet to be seen...Nobody knows for certain what the governments are going to do when Gold prices start getting way out of hand...We'll cross that bridge when we get there...
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