fun with numbers for Red Chris deposits......
Assume each deposit has a separate cone shape.
Volume of a cone = 1/3(pi)(radius squared)(height)
rock density = 2.68
For Red Chris Main, deepest hole is 1000 meters, radius ~400 meters
For Red Chris East, deepest hole is 1500 meters, radius ~380 meters
Main tonnage: 1/3(3.14)(400m)(400m)(1000m)(2.68t/m3)= 448 million tonnes
East tonnage: 1/3(3.14)(380m)(380m)(1500m)(2.68t/m3)=607 million tonnes
Assuming total average grade = .5% copper equivalent, there is over 10 billion pounds of copper at Red Chris. At $3.00/lb, the in ground resource may be valued at $30 billion.
Should continued drilling expand the east deposit to the ENE, and the drilling to the west, link up the main and east deposits, the tonnage and contained copper will increase.
Discounted to 10% of in ground value, and assuming a third party puts up $1.5 billion development capital for 50% of concentrates, and a share capitalization of 35 million shares, Imperial Metals could easily reach $40/share. How long that would take, and how much volatility along the way is unknown. |
