SIR 0.00% $2.52 sirius resources nl

I realise I have no mining experience whatsoever, however I can...

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  1. 5,669 Posts.
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    I realise I have no mining experience whatsoever, however I can attempt to address each of your concerns Tomboy. And maybe bobminer, who has like 35 years experience can add his 2c if I'm off the mark:

    - full mining grades dont match drill grades
    Unlikely, this is a magmatic ni deposit the grade continuity is consistent throughout the orebody. Due to the geometry of the orebody, additional dilution will have a minimal impact to the mined grades. In addition, Nova is hosted in a granulite-facies mafic hostrock than is as stable as granite - this is in stark comparison to most Kambalda-style nickel deposits than have ultramafic hangingwalls (like Windarra for example) which is comparable to weetbix.

    - np collapses in 2017 in time for mine opening
    Really? If the nickel price drops that low then nearly every nickel mine in the world is out of business. What a ridiculous statement.

    - capex costs blowout tp $1B instead of $470M as in SIR DFS, very likely
    A blow out of over 100%??? This isn't a HPLC nickel laterite project, it's a simple crush-grind-floatation plant for a high recovery Ni-Cu conc. Please explain your very likely scenario.

    - unionised labour goes on strike or want 30% pay rises so you 60 baggervrich guys have to pay the workers more instead of yourselves..dont forget tall poppy syndrome
    Unionised labour is strictly Pilbara iron ore mining. The likely contractor will be Byrnecut or Barminco. No unions.

    - the shorters take your sp on full ball like they did fmg, ago, ncm, slr, etc etc
    This will not impact the mining schedule or production

    - delays and breakdowns at building stage, delay in start dates
    Maybe, have yet to see a deadline missed.

    - not meeting the high production, income guidance predicted by the market darling analysts
    This is a risk with any mining project, less so with a low-risk project like Nova if you understand the geology.

    - the lawyers, work accidents, plant shutdowns, builders variation claims..
    Lawyers why?? Work accidents - managing risk, now we have Rob Dennis the project is sure to be LTI free. Plant shutdowns are scheduled.

    Share-price drivers over the short-medium term for SIR are exploration success. They are dominant landholders over a virgin nickel province, they have the nucleus of the Jubilee exploration team, and they are funded to the tune of $10M per year.

    In addition, any discovery will easily be financed to DFS, which as shown can be fast- tracked within a 18-24 month timeline. Oh, and gold? Did I mention gold? Early days for Baloo but the ground is prospective for Moz deposits, and large discoveries on the salt lakes are still being found, as in Goldfield's recent "Invincible".
    Last edited by CashedUpBogun: 25/01/15
 
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