Now I do have to throw a little cold water on myself after all that heat we cannot expect BGS to be drilling that all out in the next month, few issues:
1. I assumed to 150m they haven’t drilled that deep yet, they aren’t drilling that deep yet, so while the tons are there we aren’t going to see them on paper for a while.
(To temper that though I am more than sure they have a lot more than 150m there, but I am only interested in what I think they can open pit, those are mine plan tons, not tons for the sake of tons.)
Look at KDR for example 126Mt big deposit, question though how much of that is in the current mine plan? What are those low strip tons, they only add up to 47Mt.
Is it nice to have all those extra tons? Sure why not but is it necessary to go beyond 150m right now? No absolutely not, its waste of money and time. BGS can leave those tons undrilled as far as I am concerned if it’s not going in the mine plan leave it.
2. Weathering. The weathered section is rubbish overburden that needs to be stripped, especially in yando there is some weird weathering going on we will not know the extent till more drilling is done, it might get better it might get worse.
To temper this I have to point out it’s not an uncommon problem. When I was drawing up my AVZ estimates they also have 50-60m zones of weathering and overburden, I am sure other companies are also dealing with this to different extents, it’s not unique to BGS, just needs to be factored into resource estimations in my opinion. A lot of people like ignore it and put on their ‘max hype everything is super awesome’ glasses I don’t see a point to ignoring it, just factor it in.
In the near term I can see potential for BGS to upgrade the JORC to 70Mt-80Mt range, by years end that target I feel could get to 120Mt all real mine ready open pit tons.
So that’s a lot of lithium what’s the deal with the PFS?
Here are BGS costs and my preferred production option.