Ddzx,I'll stick with my maths thanks.7/.03 = 234Therefore, 234...

Ddzx,

I'll stick with my maths thanks.


7/.03 = 234

Therefore, 234 tonnes will need to be dredged and wet processed to get 1 tonne of ore with a grade of 7% TREO.

That is $936.

Then CUX would need to dry process 5.7 tonnes of wet processed.

5.7 x 23 = $131

Therefore, cost $1,067 for a concentrate of 40% TREO.

Or $2,667 for 2.5 tonnes of ore containing 1 tonne TREO.

Let's assume 60% recovery, costs then become ((2667/60)*100) = $4,450

I have assumed that because management has said there will be improvements in the recovery rate.

With a basket price of $61/kg or $61,000/tonne if CUX had to pay $4,450/2.5 tonnes of concentrate at 40% TREO it seems that CUX would be very viable.

Lets assume CUX recieves 40% of the basket price that is a cost of (4450/(610*40) = 18.23%

http://www.techmetalsresearch.com/metrics-indices/tmr-advanced-rare-earth-projects-index/

To compare: The hard rock mine with a grade of 0.7% TREO would need to mine and crush 143 tonnes to get 1 tonne TREO. At $100/tonne crushing and mining expense means an expense of over $14,000. All of that material would need to be dry processed @ $23/tonne so another $3,300. A grand total of $17,700.

Assume the same recovery rate of 60%, costs for the hard rock mine become ((17,700)/60)*100 = $29,500

To calculate what would the hard rock mine's basket price to be equivelent to CUX then it would be (29,500/18.23)*100 =$161,000/tonne

None of the REO resources have a $161 basket price by TMR.

I think you are wrong ddzx and to make such a defintive statement as 'looks hopeless to me' says a hell of a lot about yourself.

In fact CUX maybe the most profitable REO resource but it seems you might be too blind to see it.

Cheers