RESERVOIR MINERALS INC V.RMC

News

[rob926]

Now would be a good time to release some more holes with commodities back in favor (at least for now).

[thorgb1]

RMC is heating up. Looks like it wants to breakout. Lets get some holes put! TGB

[megacopper]

Yes now would be a good time to release results similar to the last few holes but what happens if the results are say 300 meters of 1% Cu and 1 g/t Au and not the extreme high grade of the last couple holes that the market has become use to with RMC. Its still a great hole but how will the market react, probably not so good. The last hole was fantastic, putting it mildly, 

[rob926]

Depending on which hole it is. The first hole that caused the stock to double was 266 meters at 1.06% Copper and .28 gold. This was regarded as a great hole . I agree the new holes of higher grade are impresive as well as important but the real value will come if not only we a bunch of high grade ore but a huge amount of lower grade ore like what was found at Bor. See the below numbers that are

[7heSpeculator]

Rob926 All those deposits with the exception of Chelopech are open pit mines/projects.  none of them would work at a depth of 1,500m which it would appear is where the RMC porphyry is. in my opinion, anything less than 1% Cu and 1g/t Au will not work in an underground block cave/sublevel cave mining environment. TS

[thorgb1]

Not sure I agree with that assessment. A few analysts I have spoken with have told me they are looking for bulk quantity, and anything higher then 0.5% Cu would make Freeport very happy. TGB

[7heSpeculator]

Sorry, but it just wont work at those low grades if it is an underground operation. at around 0.5% Cu eq the rock is worth just $35 a tonne. even with economies of scale, UG mining will be the best part of $30 a tonne, Processing + G&A + SusCAPEX etc will be at least another $15/tonne. It just wont work at these prices, it is the High Sulphidation part of the deposit that works. At 1% Cu eq

[redmetal]

NCU is building an underground 1.6% CU eq at about 2000 feet deep which will be profitable, so you are correct.

[7heSpeculator]

Thanks RedMetal, NCU are a good analogy for the deep porphyry, they do it would seem have an open pit to start with and help pay off the CAPEX, but a good flag. the NCU economics are interesting, while it will get better im sure, an 8%NPV of just $1.3B with annual operating cash flow of $450M just shows how sensitive these low grade very large projects are to metal prices/grade. Thanks TS