Taken from SH
Why MLSM could be a technology stock if the tailing process works:
As I understand the point behind the tailings Project is to make metals at the mine site. I don't know if most people know it or not, but miners actually only receive about 45-55% of the value of the metals they ship. Plus they have the shipping costs and potential penalties for bad stuff such as In, Pd, Pt, etc., particularly As, sometimes even gold and silver. So $100 rock translates into about an average of 50% or less at the mine site. So right now a zinc deposit needs to have about 20%Zn equivalents to be economic.
This Process of making metal at the mine site reduces the milling costs, reduces the penalties, and reduces substantially the smelting charges. Therefore more revenue for the mine site and the smelter becomes a refinery. Potential payback at the mine site then is in the order 85-95%. Also reduces air emissions and therefore the longterm as well as short term environmental liabilities. Potential end products are metallic Zinc, Metallic Cu, Metallic Pb, Metallic Co, Metallic Ag and metallic Au, etc. And whatever else can be taken out or extracted. The effluent can be just an ordinary Gypsum, or iron rust (Fe2O3). The rust is leached for gold and silver at the end of the process if the occasion requires it. These two effluents are chemically stable in the environnment and also may have commercial uses. Gypsum is used in construction and as a fertilizer and the iron oxide, if low enough in sulphur content, may be used to make steel as a source of iron ore. If not then it is just a pile of rust and is a stable end product.
Majors with smelters may not like this because there will be a larger number of metal suppliers rather than just a few smelters. The process may almost be elligible for an environmental fund I would think. No smokestacks, but it does require a limestone quarry. Also it is exothermic, and therefore not a big energy consumer and may actually be source of energy if handled right in some circumstances. This type of technology can also make a lot of fine grained deposits viable, as well as some tailings ponds around the world. I.e. it is potentially an environmental clean-up tool. Even the occasional piece of old car can be dumped into the Pot and it's metals extracted.
Got the picture?
I forgot to mention the much reduced milling costs with this technology as well. No need to make specific concentrates when a bulk concentrate will do the job. The process works on the molecular level so the grain size is immaterial.
Overall lower costs of metal production and environmemtally friendly as well.
Remember that I am talking about the technology in general, not just this process, since I have no details on this particular process.
This makes MLSM a TECHNOLOGY stock. If fuel cells are tech stocks then technological advancements in metallurgy, just another science, is also technology. Technology is just applied science.
Regard this as a test Phase. Tailings are available in just about every mining town in Canada and the USA, to say nothing of the rest of the world. The tailings at the Potter Mine are at about 1.5% Zn. That is worth about $15 per ton or $17.50 per tonne US. That is about $25 per tonne Canadian. Other metals are Co at 0.05-0.08%, worth around $30.00C per tonne, and Cu at 0.2% for another $5.00C. That totals to about $60.00C. That makes a gross velue of $30 million C for 500,000 tonnes.
If they sell or lease this technology to Noranda say, then there are about 70-100 million tonnes of tailings at the BMS mine in Bathurst worth about 3-5 billion $.
The Breakwater/Caribou mine becomes economical, the tailings at the Noranda Heathe Steele mine becomes economical, etc. And a lot of small mines or deposits become economic. Grain size and metallurgy becomes a non-issue.
However Smelters become dinosaurs as every producing mine becomes a metals producer. Environmental problems become a non-Problem and metal Prices drop dramatically. However revenue at the mine site increases dramatically. Result is more employment in the mining communities and mining communities have a longer life expectancy. Etc.
Bottom line don't worry about the tailings. Also don't forget that the Potter mine is still there and with this technology they can preduce the metals themselves. There is more to this than I can say here but think value added and just in time direct shipping to the users. Unbelieveable potential.
It better work!! |
