If you dont like the machete weilding locals of the DRC why not have a look at the leverage mrx gives to Cu.
Just finished having a read of an article in Resource Socks on mrx.It gives a fairly good update on where Chapman and Co appear to be heading with their Watson/Cuthbert/Earl and Whiterange projects.It seemed to me as though they had lost a bit of their direction as of late but this article puts it all back in a nutshell.I'm just hoping it stays in the nutshell and doesnt get cracked open by lower Cu prices as happened at Cuthbert.The way China/India seem to using the stuff it doesnt appear as though this will happen any time soon.
Mrx is looking to commit to White range in June 2004 with the full feasibility study due in May with a possible start up in early 2005.If things go typically you could probably add another 6 months to this start up.
The basic parameters for White range are
- 15,000T/Yr Cu cathode - 8 years minimum mine life - 12 Million tonnes/1.1%Cu - Start-up cost $25M
More drilling mid 2003 revealed further significant(well above 1% Cu) grades at the White range prospects of Toby Barty,Greenmount/Desolation and Copper Canyon.So there is even more potential upside to this project.
Production at Mt Watson has effectively been put on the backburner as drilling goes apace to redefine what appears to be a much larger resource than first thought.Drilling has already expanded this resource to 1500Mtrs in total length by linking what was previously thought to be separate zones of mineralisation.The orebody is also deeper than first thought,touching 100Mtrs of oxide mineralisation in some places.Subsequently the resource has been increased by 65% to 2.6Mt at 1.1%Cu.
Mt Watson has now been earmarked for another 5000Mtrs of drilling so if they continue to hit the same grades one could assume they will possibly even double this current resource considering the open nature of the mineralisation.
Not far away at Mt Earl 15RC holes were drilled with every hole hitting significant mineralsiation(well above 1%)in 2003.
None of this includes the potential of the sulphide mineralisation below the oxides.
Chapman has put a scale of production at Mt Watson/Cuthbert of 15,000 Tpa of Cu cathode as well as White range giving a combined total of 30,000T/Yr Cu cathode/Yr by 2006.So he now appears to be chasing a much larger total rate of production(which was originally 20/25Ktonnes.With the economies of scale constantly improving as the resource is increased at each project mrx are confident that they will be able to produce at 50-55c/lb.If Cu stays at $1+/lb they have potential annual revenues of $100M/Yr.
So at least they still appear to have the intention of producing.I was worried that they might be looking to redefine their projects to a stage where they would let someone buy them out.This does not appear to be the case but then one should still not necessarily rule out the possibility.
Hopefully we'll see the rest of those assays that they promised over a week ago this coming week
Cheers d.
MRX Price at posting:
0.0¢ Sentiment: None Disclosure: Held
