Re: Our resource vs Donner Metals.
in response to
by
posted on
Sep 04, 2010 02:41PM
NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)
Edgy you wrote:
"I received an e-mail from Agoracom that announced resource results of a mine to be built in Quebec province.
I am not invested in that company but was curious as to how valuable and viable the resource was considering that at least some of their resource goes down to 1400 meters, so I added my calculations to the results per:
Donner Metals Ltd.: Inferred Resources at Bracemac-McLeod Expand by 2.07 Million Tonnes of Massive Sulphides
McLeod Deep Zone Inferred Resources
Mineralization Tonnes Zinc Copper Silver Gold Specific
Type (Millions) % % g/t g/t Gravity
---------------------------------------------------------------------------------------
Mineralized Massive, semi-massive 2.47 9.21 1.22 39.81* 1.12* 3.75
Envelope & stringer mineralization
(Translating into lb. & Oz.) 20.3lb 2.7 1.38oz .039
Value of metal per ton $19.49 $9.31 $27.39 $48.55
Total value per ton $104.74
---------------------------------------------------------------------------------------
including Massive Sulphides 2.07 10.66 1.33 41.72 1.21* 3.87
(Translating into lb. & Oz.) 23.5 2.9 1.44 .042
Value of metal per ton $22.56 $10.0 $28.58 $52.29
Total value per ton $113.43
Used following prices:
Copper $3.45/lb.
Zinc $0.96/lb.
Silver $19.85/oz.
Gold $1245/oz.
NOTE: They are considering building a mine with a resource barely above $100 per ton while ours is in the range of 5 to 7 times HIGHER.
And there are people that come on this forum questioning whether we are viable or under valued etc.
HALLO From Mother Earth To Ordinary JOE INVESTOR - WAKE UP!
Are you arithmetically challenged by such numbers?"
**********************************************************************
I am invested nearlly equally in NOT and DON. I believe that your analysis of DON is flawed. DON has recently received a full feasibility report which is based soley on the measured and indicated resources of their Bracemac-McLeod Deposit. It does not include the inferred resources of their Mcleod Deep Zone. "The possibility of developing McLeod Deep will be assessed under a separate feasibility study"
Regarding the Bracemac-McLeod Deposit:
Economic threshold analysis of the project on a joint venture basis returns a 8.1% internal rate of return and an NPV7 of US$3.4 million using zinc: $0.80 $US/lb, copper $2.50 $US/lb, silver $12.00 $US/ounce and gold $1000 $US/ounce with an exchange rate of $CDN 1.04 to the US dollar
and furthermore:
The project is sensitive to metal prices, exchange rate and capital cost as primary impacts. For example, a 10% increase in metal prices translates to a 12 fold increase in NPV and a 2 fold increase in internal rate of return.
All of the aforementioned metal prices are currently at least 20% higher. I cannot say where metal prices will be in 18-24 months once the mine is in production...
Also, regarding your calculations for the value per tonne of the metals within the Deep Zone, have you presented them above reflecting a ?10% discount to the "insitu value"? For example, 10% Zinc equals ~220 pounds/tonne and at $0.96/pound= $211/tonne (you have posted values above of $19.49 and $22.56)
Perhaps I have misinterpreted your post, and I apologize in advance if I have.
Cheers, Luker