Potential re-rating here with new assay results on the way...

Potential re-rating here with new assay results on the way likely to be +1% compared to resources grade of between 0.15% and 0.2%. Possible short term trading op before these results if sold down towards the gap, may not fill it.

"Hazelwood was originally intending to bulk mine the area, but Mr McAuliffe said the better-than-expected assay results mean it might conduct high grade mining in selected areas instead."

If HAZ could identify a significant high grade resource such that they could mine say +0.4% WO3 initially expect this would have a massive increase on the IRR as they could pay off more of the capex early.

Also from recent update;

Feed Grade ( WO3% ) Plant Recovery ( % )
< 0.10 67.0%
> 0.10 < 0.15 75.0%
> 0.15 < 0.25 77.0%
> 0.25 < 0.30 77.5%
> 0.30 78.0%

Could expect recovery to be higher in early years if they process high grade areas first.

Could not find a capex figure for HAZ so perhaps WLF proposed 3Mt PFS provides some clues, WLF quouted 64M pounds or A$125M at current echange rates. Some differences between the two but would put HAZ somewhere in the A$50-100M area?, some process and infrastructure differences. Very rough....would be more confidence if +10 year mine life.

HAZ are working on X-ray ore sorting which could reduce capex due increased feed grade and smaller required plant size. This is used in diamonds but not sure if it has been used in WO. Depending on WO prices and efficiency could act to lower overall cut off grade and increase mineable resources.

"The potential operational benefits of X-ray ore sorting are yet to be integrated into the mineral processing flowsheet - its use is likely to further improve
operating costs and mine life."

Capex and A$WO prices are the biggest issue for me, both WFL and HAZ used higher than spot prices in their studies.
Early days but,...grade is king.