Kennnr,
Try this one out. Feel free to modify to make it better. At least, try to speculate what the experts and the movers (e.g. Frank) in the industry have in their heads. That's all we can do, speculation.
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- Lifting the stuff out is part of the equation which seems to pose no big problem. At least, one problem solved.
- Digging the stuff out is another issue, especiallly at depth. However, there are 2 things that KWG could do to reduce the cost, at least in my opinion: (a) restrict the amount of the samples (just produce enough, say 10 tonnes, for the purpose of doing the pilot scale demo..."how much is enough" would depend expert's opinion in this area), and (b) get samples from the RoF area, but from deposit located near surface such as that from PRB BC, keeping in mind that this is for demo purposes and that BC could be the first mine in the RoF. As I recall, BC has the resource estimate completed (some 10 M tonnes of Chromite, which could last for a few years) and the deposit is very near the surface. It would not be a surprise to see Frank teaming up with David with a proposal to start BC first, just to complete "the whole package" for their dog-and-pony show. Black Horse can follow in co-operation with NOT. In other word, KWG would have:
- a deposit that is ready to be developed (BC)... and then BH and BB, or the whole sequence could be changed drastically (depending on CLF?), e.g. BC, BD, BT, ???;
- a different process (patent applied) that can produce value-added product;
- the RR to transport the ore out of the RoF; and
- a processing facility (using their proprietary process with cheaper energy source, i.e. gas to "burn off the unwanted components in the ore).
An attractive and comprehensive package I would say.
Demonstration on a commercial scale can be left to other partners with deeper pockets using bulk tonnage from mines, with similar chromite ore compositions, in other countries.
If all indications seem to point to the same (right) direction, they can start building a reprocessing facility in a location where cheap energy sources (gas) are located. As a common practice, during the commissioning phase, the plant would be extensively tested, fine tuned, etc... to demonstrate a viable commercial operation before full production would start.
goldhunter
