Mike62

Just noted that the info in your table is more up-to-date than that in the reference.

In term of the combination of size and grade BH seems to be the best candidate, grade is certainly important, but you don't need too large a resource, as long as you have "enough" to last for a few years. BH would last 78/2Mtonnes per year = 30 years (long enough).

However, BC, even with small zise (10Mtonnes) has the highest grade of 37% (and on high ground, which make mining development easier). This could be a good candidate to mine first to get some initial cash flow (say with a production of 1 M tonnes per year the BC deposit would last 10years; double the production to 2 M tonnes per year BC would last 5 years). Afer that other mines will be up an continue feeding the mill).

Because of the small size (EA would be simpler, and the Capex would be less) and more advanced status of the development, and KWG will not have to wait for NOT to develop Eagle and then BB to have a ramp built for accessing BH. Of course I am assuming a JV between KWG and PRB). With this JV, KWG can say that it has a deposit which is ready to be developed in a short period, while they build the RR.

As I recall, from CLF proposed plan for BT, the chromite business has a good profit margin for producing some initial cash flow. Just wondering if the ore from BC (at 37%, ave) would be qualified as DSO.

Personally, I would go for a modular mill, starting with 1 M tonnes/yr production, then scale it up to 2 M tonnes/yr (or more), if required.

goldhunter