PMH 0.00% 26.0¢ pacmag metals limited

simplistic scoping for sentinel

  1. 3,178 Posts.
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    From the 29 Jan 09 Quarterly report see above; taking the map Fig 2 showing ft x ppm GeO2, we can broadly estimate a ball park GeO2 resource.
    Taking quick and approx areas of the eastern and western GeO2 reserves, using the 500m scale provided,
    I get 2.5million sq m for the west side;
    and 3.5million sq m for the east;
    Total area of GeO2 mineralisation = 6 million sq metres.
    Lets allow the mineralised horizon to be 0.3m thick (assume no repetitions) and allow the ore will weigh 2 tonnes per
    Lets say from eyeballing the drill intersections listed in the above quarterly report and various other reports that our 0.3metre thick GeO2 horizon runs at 70ppm.
    This equates to a reserve of 252 tonnes GeO2 or 252,000 kgs, which at say US$900 per kg has a gross in-ground value of say $226Million.
    Now gross global Germanium production is ~100,000 kg PA, from the Jan 2009 USGS pdf report.
    Say PMH or a partner plus PMH was able to muscle in to 20,000 kg PA of the global GeO2 market.
    Lets assume costs swallow $400 per KG leaving a gross profit of $500 per kg GeO2.
    This gives a 10 year mine life and a possible gross profit of $10Million PA.
    I have added nothing for uranium credits or moly.
    In reports last year mention was made of mineralised surface samples 5 and 10km north, so more orebodies might be discovered.
    If uranium and moly credits are added in the gross EPS could reach 10c.
    It could pay to spin Sentinel off.
    If there was a metallurgical advantage it would be possible to burn the lignite to make electricity as a by-product but carbon credits would have to be bought.
    There are some ideas.
 
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