The small resource of 70m tons was deliberate, it is enough to get it underway in the fastest time.
The 6m diam shaft is going to cost about $200m and will take approx 3yrs, it could be sooner but they have estimated 3yrs, all of this will be done completely off the kzl balance sheet so kzl will not have any debt exposure.
They know the deposit goes for 18km and most likely goes for 22km but they know it definitely goes for 18km as the previous wide spaced drill holes have hit mineralisation for 18km. at the AGm it was proposed that it would most likely be 5m tons per year and have a life span in the decades probably in excess of 30yrs.
The big question now is how much of the project will go to the JV partner, i have heard figures of 30% to 51% to a JV partner. 50% of a massive mine like that is a big thing for KZL.
One the shaft is down they can infill drill to a bankable stage and then mining can go quickly after that as the shaft will already be there, just build the plant and they are off.
KZL Price at posting:
78.0¢ Sentiment: Buy Disclosure: Held
