Sorry mate but 500,000t of 0.17% Co is 850t contained Co not factoring recoveries.
500,000t x 0.0017 = 850t
850t x 62,500 per tonne = 53m USD
What gives N27 the value IMO is the fact we have confirmed that we can increase grade on the already defined JORC and also increase tonneages on the defined JORC as the deposit is open in many directions.
Both of these factors and the upcoming assays gives us every inclination that the first exploration target of 6500t of contained Co for the performance options will get hit. Management wouldn't set them as too unrealistic if they didn't think they could get them. Especially considering that there is an even harder one to get for 12,500t I think it was.
So seeing that the initial assays exceeded managements expectation I think the market is starting to get a wind that at a minimum, the first set of performance options will get hit shortly. So 6,500t of contained Co is on its way as today's announcement somewhat confirmed that milestone has a high likelihood, factoring in ground position and further prospectively of the land.
6500t x 62500 = about 550m AUD, not factoring in recoveries however not factoring in bi product credits if you are looking at it from a revenue perspective.
The above, makes for a project IMO as we would not require significant capex to get a small tonneage plant up, nor need significant pre mining capital to strip the overburden as the orebody starts from surface. Infrastructure is near by and ports are close so it sounds like a low opex and capex operation.
As grades are coming in higher than expected, N27 need less tonneage to get the contained cobalt target. For example using 0.2%, the 500,000t JORC would need to increase to 3,250,000t... bugger all really. We have plenty of targets within close proximity, I think this is easy peasy as the ground is pregnant with the stuff.
This outcome would give us good leverage to resource expansion...
Where things get veryyyy interesting is if we hit the second performance milestone that management have targeted. $$$$$$
The take away point from today's announcement is, for me, management are going to get their phase 1 performance options at a MINIMUM and we will get a cobalt mine that the world NEEDS.
Cobalt prices are going to go above 100,000t USD. Guess who has high grade Co and fantastic dirt and plenty of it?
Believe in cobalt? Believe in N27.
Boy.
Expand
