Re: OT but Nickel Related
in response to
by
posted on
Feb 11, 2008 10:18AM
Discuss the various junior resource companies within the McFaulds Lake Area
Poly, I have just placed a big ? over your head... There is no comparison between CRO and NOT. Find below highlights from CRO's preliminary economic assessment (PEA). Note also that only part of CRO's deposit is open pitable.
Highlights of the updated PEA include:
- Open pit amenable resources of 6.7 million diluted tonnes grading 0.38% Ni and 0.23% Cu with a waste to ore stripping ratio of 1.87:1 to a depth of 160m below surface
- Resources amenable to underground mining totaling 3.0 million diluted tonnes grading 0.63% Ni and 0.32% Cu
- A combined open pit/underground mining operation supplying
2,800 tonnes per day to an on-site concentrator
- Open pit mining costs of $9.60/ore tonne, underground mining costs of $41.44/tonne, processing costs of $10.39/tonne and G&A costs of $2.59/tonne of ore
- Average cash cost/lb of $4.89 nickel net of byproducts
- Total recoverable metal production of 71.2 million lbs of nickel and 49.6 million lbs of copper over a 10.5 year mine life
- Pre-production capital cost of $108 million including a 15%
contingency
- Pre-tax Net Present Value (NPV) of $134 million at a 7.5% discount rate, ranging from $236 million to $32 million with +/- 20% change in metal pricing
- 33% Internal Rate of Return (IRR), ranging from 51% to 14% with +/- 20% change in metal pricing
- Economics based on an average $10.00 US/lb nickel, $2.50 US/lb copper and $1CDN:$0.9US
It should be obvious to you that the value of CRO's rock/tonne is substanially lower than NOT, not only because the Ni and Cu grades are susbstanially lower, but also because there are no other metals, including PGM's of significant concentration, or else they would have been factored in.
Apples to oranges I am afraid - I see nothing scary about it...
Regards,
B.