Good news! It sounds like they could scale it up to the initial 15,000 tpy. Depeding on their strategy this initial plant can be put to work without developing a mine at La Blache. They could use feeds with higher TiO2 contents from any other sources, e.g. Brule has approx twice the TiO2 and other mines even have much better grades.

The PEA for La Blache has some estimates for Capex and Opex, but if RGX decides to buy the feed instead of digging up the ore themselves then cost of mining would be eliminated (of course, one has to pay for the feed, but there could be some net savings). Similarly, transportation could be reduced if the processing facility is located near the source of feed.

As a first guess, the cost for a processing facility near the source of feed could be something like $2000/t and with a selling price in the range of $4500/t (RGX corp presentation) the net profit would be about $2500/t x 15,000tpy = $37M/yr which is not bad for a "demo plant".

Kindly check my math.

goldhunter