RAIL to SUDBURYCananadian nickel juniors need a new mine modelling.
Other than cheap cons.
Whereby, an intermediary product is produced which allows the junior
and investor to profit.
A model that coheasively works with majors.
Distant nickel projects should never be modelled with, cheap cons.
Projects will forver show minimal profits thus compromising the
junior, investor, and project itself.
Distant projects should see
- MHP concentrates
- Matte end product
- full metal alloy
If not... project sits for years and makes it easy pickings for larger players.
Nickel chloride - high concentrate is actually a very good idea.
Provides junior with a modest price per tonne which
assists in transporting the near finished product to major to finish as
metal alloy
$16,400
- $ 3,000
= $13,400 profit for major
Would be interesting to see what the all in costs are for major
using UG mining to ----------> matte or metal ?
Versus.... junior sending near finished product to major ?
Would the metrics favor this model vs major performing start to finish ?
At $3,400 tonne would be really good.
Assists junior with shipping logistics.
Yukon to Sudbury = 5,382 km
Diesel $1.50 / Liter
Transports consume ( 1 liter diesel = 18 km )
5,382 km
~ 18 km
= 299 liters of diesel + ( driver not factored )
x $1.50 / L
= $448 cdn
Shipping high grade concentrates 90% would save $$$
Yet.... factoring driver wages and full round trip - frieght return / empty / not practical
Drop shipping to Rail Terminal with ores inside Q40 containers
makes it far cheaper and easier to load on, train.
Rail costs in Canada are rather interesting.
If Wheat can be shiped and still churn a profit why not ore ?
CENTS per TONNE
Brazeau adds: “Canada’s railways are providing world-leading value to their customers and all Canadians. Our very efficient and highly competitive freight rail system is delivering industry-leading safety performance, high levels of private-sector capital investment, and pioneering innovation, at virtually the lowest cost to shippers anywhere in the world. This is an incredible advantage for the Canadian economy that should not be jeopardized by more government regulation.”
In 2021, shippers paid 4.16 U.S. cents per revenue ton-mile on railways in Canada and Western grain shippers paid nearly 30 percent less than the average rate at just 2.97 U.S. cents per revenue ton-mile.
LINK
https://www.railcan.ca/news/independent-report-confirms-canadas-freight-railways-are-among-worlds-lowest-cost-to-shippers/
Change the nickel juniors end product
intermediary product even at a discounted price per tonne
major simply fires nickel = metal alloy
= you now have a cohesive strong partnership
= give a lil more to junior justifies moving project forward
= easier on major
It's how i see it - change juniors mine model end product
versus
current Canadian path - projects go nowhere due to spot prices + cheap cons
- nickel chloride 90% ( $3,500/t ) assists with logistics
- 90% NiCl in 40Q containers - transported to rail terminal
- ship to Sudbury
Cheers...