Ausheds,Now I'm laughing. Yes you did tell me you bought more...

Ausheds,

Now I'm laughing. Yes you did tell me you bought more after the last announcement, if fact twice in your last post. You were always the skeptic that forced me to find more answers. I like skeptics, who have open minds. Skeptics with closed minds or other agendas are different if they have the potential to undermine where I have invested my hard earned cash.

Ok I'll try and impart what I percieve to be the process for processing the resource. Sorry don't know how to change to 16point font.

First scoop up some alluvium and put it in a spiral gavity seperator. These are common and used in sand and coal mining, so a number of people make them.

How much alluvium do you put in?

Admittedly lots, but the cut off cost of this process is only $4.30/tonne of alluvium.

I'll assume a grade of .33% TREO rather than .295% TREO it makes the maths easier.

3 tonnes to get 1% of 1 tonne TREO or 18.75 tonnes of alluvium to increase the grade to 6.25% but thats gross. We need to take into account the recovery rate of 76%. I work this out at 24.67 tonnes taking into account the recovery rate.

This would cost $4.30 x 24.67 = $106.10 for one tonne of wet processed alluvium with a grade of 6.25% TREO.

Noting that the grade is 6.25%. Take for instance Nolans Bore grade has a grade of 2.5% and I will assume a recovery rate of 76% also.

That gives a recoverable grade, with a recovery rate of 76%, for Nolans of 1.9%. Therefore, 3.3 tonnes of ore to have the same wt of TREO as in the CUX wet processed ore.

Then hard rock TREO ore need to be crushed, where as CUX's doesn't. No cost for CUX.

Assuming, that a resource is in Xenotime or Monazite like NTU's, which can be dry processed magnetically and electrostatically the grade can be increased to 50%. I am waiting to see the recovery rate for this process, but I expect it will be about the same for NTU as CUX. I could be wrong because the higher grade of CUX over NTU may make the process more efficient.

I will assume 100% at this stage so another 8 tonnes of wet processed ore will be needed to produce another tonne of ore with 50% TREO. For NTU with a ore grade of between 1% and 2% this will mean aproximately 3 to 6 times more ore will need to be processed. That would equate for a resource like NTU's between 24 to 48 tonnes needing to be 'dry' processed compared to CUX's 8 tonnes. And of course no crushing for CUX.

Really it is probable that to mine and process ore to produce a 50% concentrate will be cheaper for CUX than NTU.

This of course assumes that CUX management will not find patches of higher grades, if they do CUX's costs will dramatically drop.

Once again my figures and assertions above should not be relied on for investment decisions. DYOR.


Cheers