Ann: Exceptional Vanadium Grades Confirmed at Koitelainen Vosa, page-119

Yes there are many things that come into the equation. At the end of the day to some degree it also comes down to time and cost. Gabby stocks could possibly concentrate higher but it might take more time and expense to do so.

Anyway - Focusing on PUR, the announcement says that they expect an 80Mt exploration target to produce 4Mt of concentrate. i.e it takes 20 tonnes of ore to produce 1 tonne of 2% concentrate. That means a 1Mt front end would produce 50,000t of concentrate.

Now I am not 100% sure of the geometry of the deposit (are there pics in previous announcements)? However let's assume a strip ratio of say 1:1 which is very generous. That means you have to dig up 40 tonnes of dirt per tonne of concentrate. Mining costs are likely somewhere in the order of $3/t at best. This means you have $120/t of mining costs per tonne of concentrate. Assume some cost for processing and transport, fixed cost overheads etc etc. We might be talking $150-200/t to produce concentrate. Every increment of strip ratio above 1:1 adding $60/t of concentrate.

Now let's say V prices for 98% trades at $15/lb long term or $33,000/t. That means that a tonne of 2% DSO con would have contained V worth $673. Processing cost is probably $2.50/lb based on $4/lb C1 cost. That would work out to costs of $112 tonne of concentrate.

So I feel like maybe even if you got an even split of margins you might make $100-150/t of concentrate. for 50,000t of con that is $7.5m. It's not going to pay for Stage 2 processing but it's decent money vs market cap!

Obviously a lot of spit balling in here. Happy for people to pick apart numbers and throw there own thoughts in as long as it's genuine discussion.