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Gold/Mining/Energy : Zentek Ltd - ZEN -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (5394)	12/5/2013 9:40:14 AM
From: hoov	Read Replies (3) \| Respond to of 22703

RR, how many companies do a Whittle on a maiden resource? Do you even understand what a Whittle is? Lar

To: Rocket Red who wrote (5394)	12/5/2013 1:27:33 PM
From: Bentonstocks	14 Recommendations Recommended By 3bar 99FXD bellab cole steel copperknob and 9 more members Read Replies (4) \| Respond to of 22703

RR, okay, so what could be out to lunch? The resource is pretty straightforward based on the drill data and the simple the simple geology. Many people we are able to calculate the resource pretty damn close just using the drill data. Moreover, the Whittle resource is even more conservative and therefore robust than a standard drill data resource. So, given that we are both reasonable people, I am sure we can agree there is no 'assume' or 'out-to-lunch' in the resource. So, what else do we have? The $8500/tonne figure. You know full well that a firm like RPA is not just going to pull a numbers out of their asses, and the regulators would never let them put out a number like that without something very solid behind it. My guess is it was even conservative. And even, just for the sake of argument, you were to cut the graphite per tonne value in half, that is still a 5M oz deposit at 3.4g/t. You might want to say, but this graphite, and we don't know how much it will cost to produce. Well can easily do comparative analysis for mining (ore extraction only) costs form other similar types of open pit mining environments, and we already know the company has said the processing is simple and relatively inexpensive off-the shelf caustic bake process. Processing this graphite will be a lot less expensive than heap leaching gold. I will also say this graphite is unique and high value product in industry of very short supply with growing demand, very much unlike gold. I would argue, and I bet you I am going to be very damn close, that the cost to produce those 1.4M tonnes of graphite is no more than $1000/tonne (that is $141/oz cash cost per oz gold eq at 10M ozs), and I know others would put it much lower. Add in capex, and overburdern removal, and other contingencies I would say max total (worst case scenario) $2.5B to mine 12B worth graphite. If this were a gold deposit, it would be a 10M oz deposit at 6.3g/t assuming $8500/tonne graphite and $1200/oz gold, and you you guys would be all over this like white on rice. You think a buyer would be waiting for a PEA based on those numbers??? They bought AUR without even knowing the costs, and this in Canada, not Ecuador. RR seriously, you were pumping this left, right, and center for months, and now that you got pretty much the exact numbers you had hoped for, you are calling it all into question? Do you think I just fell off the turnip truck? Do really believe that Dennis sold all his shares? The man ain't stupid and I bet you he already, or will very shortly, owns more shares than he ever has. We will never know, as he vowed to keep this info private, but none of you guys would be thumbing your noses at this if it was gold deposit. So, I am quite certain you know how valuable this thing has established itself to be. You might be talking it down because you want more shares, but you ain't fooling me. ACN or anything else on the Venture has got nothing on this, and anyone with half a brain and calculator knows it.