My DD first impressions....
I've done a few mining feasibility studies over the years and having had a look at some, but not all of the info, available on WSP I have these first impressions/questions.
1) I'm not sure if wide spaced NQ drilling will provide a large enough core sample to be able to statistically link grade determined with the bulk sample grade from the pits. In other words, if I was MRDI, what confidence level do I have that the grade is continuous? If the two cannot be linked with confidence then I have trouble labelling the study a feasibility study, pre-feasibility study is a better term.
2) If the confidence level in 1) is not sufficient then it may be necessary to get an underground bulk sample. This is beyond current WSP financial capacity.
3) I've worked with some rotten jv partners but never have I seen one booted out. Bought out, yes. What's the real story here?
4) What is the ballpark estimate of open pit tonnage to say a 70:1 waste:ore strip ratio? This is key since, if this tonnage cannot demonstrate capital payback then they will need to get underground IMO before submitting a feasibility study to a bank to determine geotechnical properties, dilution levels etc. Similar to what Teck is doing at Pogo.
5) What are the likes of Cannacord, Yorkton, CIBC saying?
6) Have they attempted to get a TSE listing?
7) Is there a listing of individual holes and thicknesses? Reporting average thickness over large areas may hide a pinch and swell effect which will impact mining costs. I suspect this effect is not present, however.
8) I now suspect the kimberlites are soft so drift and fill may be necessary, particularly at depth.
9) No offense, but I have not met a geologist who can successfully run a mining company involved in underground mining. If they are serious about this one, they need to get some mining experience on board.
10) They need a deep pocket partner who doesn't dilute the shareholders out of existence.
So in summary, they got something here. I don't think MRDI's work will lead to a "bankable" feasibility study just yet though. I'll keep digging, pardon the pun. |
