Regenx Tech Corp. C.RGX

Cehegin Iron Ore Project - Potentially Critical Problems

[BugsyMalone]

Cehegin Iron Ore Project Overview
 

• Mineworx Technologies Ltd, through its wholly-owned subsidiary, Solid Mines Espana, S.A.U., holds an option to purchase the Cehegn Iron Ore Project located in the Province of Murcia, in south-eastern Spain. The option was entered into in 2015 and is subject to several conditions including a cash payment of €2,700,000. 
• Contrary to the Company’s repeated representations that the project contains  a historic resource of 25Mt to 30Mt, the latest technical report on the property prepared by Micon International in 2014 and submitted by MWX to Sedar, reports that the project contains historic resources of only 7.4Mt.
• Micon further reports that by using a standard 35% yield to concentrate ratio, they calculate only 2.62Mt of high-grade magnetite concentrate potential from the historic resource. 
• The Micon report estimates that the overall project resource potential could reasonably be in the range of 25 Mt to 30 Mt., yet the Company’s literature, including their latest June 2021 shareholder update, claims that the project contains an estimated 101.27Mt of potential reserves, which is oddly based only on a past aeromagnetic survey. This update and the Company’s June 30, 2021 MD&A also claims that the current exploration program will “confirm the additional resources as CIM compliant reserves”. It is the writers opinion that these claims and representations are not reasonable conclusions, as there is no past or current data to support them and such claims would most likely to be in direct contravention of NI 43-101 guidelines, which stipulates that "all deposits classified as reserves, must be demonstrably proven to be valuable and legally, economically, and technically feasible to extract. Also, all resource estimates require that a "qualified person" be attributed to the information”. None of which is offered or disclosed. 
• The Company’s website and literature describe the Cehegin deposit as "high-grade iron ore in the range of 62% to 65%" which appears to be contrary to both the Micon Report and prior operators' production reports, which state that only the processed post-concentrated product contained more than 61% magnetite, not the ore body itself.
• The Company’s last corporate update, highlights positive economics on the project and claim estimated production costs of USD $53 per tonne of wet concentrate and estimated plant capital costs of approx. USD $1M. There were no details provided for the basis of this preliminary economic assessment nor were any details of the estimated CAPEX disclosed. The name of the Qualified Person responsible for the analysis was also not disclosed.
• To be economically feasible, almost all iron ore projects typically require over 1 billion tons or more of high-grade ore and are located on or near tidewater. The Cehegn project is located over 120 km to the nearest port. Transport to port or rail would require a fleet of highway-grade haul trucks running 24 hours a day through the small towns in this picturesque region of Spain. Obtaining the requisite transport permits for this type of heavy traffic would involve extensive local and regional public inquiries with a majority of the governments representatives and residents approving the issuance of permits. It is the writers opinion, that the acquisition of the requisite permits would likely be difficult, if not impossible.
• The extensive distance to the port of Cartegena, plus the limited size and scope of the project, make the potential economic viability questionable. Even with high-grade iron ore prices at over $200 per ton, the nature of the resource, the estimated strip ratio, concentration ratio, mining and extraction costs, fuel & electricity costs, transportation & highway surcharge fees, port & shipping fees, brokerage fees, and royalties could easily exceed the concentrate value. 
• There are also significant social and environmental objections to any type of mining in that region of Spain. The Iberian peninsula is a very popular tourist destination and a critical source of freshwater. Any potential threat to this sensitive ecosystem will likely make it difficult or impossible to gain a mining permit. In a recent letter addressed to the President of the European Commission, over 134 local and environmental organizations expressed their opposition to an even less intrusive lithium mining project in that region of Spain.
• Mining permits in Spain are typically controlled by the local and regional governments, not the state, so strong local support for a foreign-owned mining operation will be crucial and most likely difficult to garner.
• Contrary to the Company’s statements, there have been no detailed environmental impact studies. preliminary economic assessments, baseline studies, groundwater surveys, or community or social engagement studies completed and/or released by MWX that indicate or assure any level of future permitting.
• Several high-quality iron ore-based mining companies are trading on the TSXV with over 1 billion of tons of high-grade, qualified resources with existing feasibility studies and permits, yet they have market capitalizations some 75% lower than MWX. Eg: (FEO-TSXV)

[djstone56]

Hmmm...well played Bugsy. You joined SH today and your lone post, (written in bullet format like a power point presentation), seems like a professional attempt to discredit Mineworx and it's Management. Still...500 reads in a couple of hours is pretty impressive. If you're getting paid by the number of reads, you should do OK on this one. Next time tho, tell your boss not to make it sound

[dieseldave]

Prepared by the Roatan Dept.of Mines (and Silly Walks)

[dieseldave]

The Micon report (dated May 20/2014) calls into question your interpretation of the transport logistics problem MWX will be faced with ,not to mention the fact a rail spur is 12km distant from the project (see below) "Access to the deep water port of Cartagena is via an existing 115 km long, four-lane highway. Bulk material such as pet coke and sulphur is already being transported by truck