$MRL 0 online
Members of #mrl
Moderators
Members
click to invite
@teevee @tommy, back to $MRL, in a camp like Sheep Creek, in the old workings, if the vein is still strong at the end of the workings, they must forget about drilling and simply extend the drifts and hope to hit another ore shoot. The old timers used to drill for show and drift for dough. What that means is, just drill to identify the vein structure, then cross cut to it, and drift along it until you hit an ore shoot. You can blow your brains out trying to drill off quartz veins to a mineable resource. And when you do hit an ore shoot, you really don't know the real grade until after it has all gone through the mill. Ore shoots might only comprise 10-15% of a vein structure, so drilling for where the ore shoot might be can result in a lot of blank holes that would be discouraging both to $MRL and the markets. Even in larger gold camps and gold systems like say Yellowknife, it is why there was never more than 6 months ore ahead of the stop miners (always drove analysts and bankers crazy because they couldn't understand how you invest in a business that could shut its doors in 6 months). It took continual drift development and assaying to find and prepare new stopes, and at Yellowkife, it worked for over 50 years.
8
from #index,
click to invite
@tim_oliver @Tommy - interesting. I spotted a couple of things. Will have a closer look tomorrow. $MRL
1
from #index,
click to invite
@dirkdiggler Amazing insights @teevee! $MRL
5
from #index,
click to invite
@DanO I know a few things about $mrl. Actually about their mineral exploration projects and mines. I am thinking in writing something on them. Many Albertans tried their luck down in the Kootenays. Used their petro-dollars to try to find ore deposits. I'll tell you what happened in an upcoming article.
1
from ~roughingit,
click to invite
@RocketRed $MRL The estimate shows an indicated resource of 5,320,000 tons averaging 1.04% lead and 2.60% zinc and an inferred resource of 16,930,000 tons averaging 1.00% lead and 2.18% zinc using a cut-off grade of 1.5% combined lead-zinc. Within this large low-grade resource there is an indicated resource of 1,900,000 tons averaging 1.96% lead and 4.10% zinc and an inferred resource of 4,980,000 tons averaging 1.95% lead and 3.37% zinc using a cut-off grade of 3.5% combined lead-zinc http://www.sultanminerals.com/i/pdf/ni43-101_jerseyleadzinc.pdf
1
from #index,
click to invite
@tim_oliver $MRL: People -two financial types and a geologist make up the management team, yet they are venturing into a deposit with a production history. They need a metallurgist to evaluate the prior process and an engineer to assess the condition of any remaining facilities. I note it's nepotistic too. In my opinion the management team is weak in the areas needed to develop this kind of property. The team is strong in capital markets. Presumably their geologist is sharp. At least she's experienced. They need engineers. Of course I would say that.
9
from #index,
click to invite
@Wintersleep @teevee I just read your post about MRL and you seem to be very knowledgeable on exploration work, cominco and the Kootenay area. Any thoughts on Kootenay Zink $ZNK ? I know it's a long shot and people have failed before, just wondering if you might have anything to add from your own perspective? Thanks!
0
click to invite
@tim_oliver $MRL - Assets, 1. Jersey Emerald: two deposits, two types minerals. That's not necessarily a blessing. I'd be wary of trying to develop the Tungsten. China seems to have a lock on both supply and demand. I interviewed at Union Carbide's old Tungsten operation near Bishop, CA in 1983. I toured the plant. I don't know what the end product was, but the process was ugly. Apparently there is nothing left at the Jersey Emerald site except a few foundations. Nonetheless, the infrastructure that supported the prior operations ought to still be there. BTW, did you mean to quote the grade as W? Usually it is quoted as WO3. MW of WO3 is 232 and that of W is 184. You can do the math. Here's a good resource on Tungsten: http://www.miningglobal.com/tech/1160/INFOGRAPHIC-What-is-Tungsten-and-Why-is-it-So-Valuable. No comments on Jackpot, Sheep Creek, or Bayonne. That's all drinking and guessing.
6
from #index,
click to invite
@DanO @Wintersleep $znk. Forget about it.
1
click to invite
@DanO @tim_oliver Haha. Now back to our discusion 1-1.5 yrs ago what was the cost to transport / truck ore to the mill? We discussed another Kootenay wannabe producer back then.
0
click to invite
@tim_oliver @Tommy, $MRL: your notes say the NI 43-101 resource update will come out later this year, but the web site says, right up front where nobody could miss it, an updated resource calculation will be released "subsequent" to the Fall 2016 drilling. Clarification needed. Gives appearance of not taking care of development fundamentals.
3
click to invite
@tim_oliver @Tommy, $MRL: corporate presentation mentions "near term production" more than once. Yet, they don't give even the most general timeline. IMO this is amateurish. Also, the presentation claims "Mill to be commissioned + designed to process zinc-lead, tungsten + gold." Someone should tell them how design usually precedes commissioning. Also, there's a construction stage between design and construction. Recovering all those minerals in a single process might be tough. Did the old timers manage all that in one mill? I could be wrong here. I'm just an armchair metallurgist, but my recollection of the Union Carbide plant is that the unit operations were very different than what we normally see in base or precious metal mineral processing plants.
3
click to invite
@tim_oliver @DanO - I barely recall. Which project was that?
0
click to invite
@DanO @tim_oliver Willa mine/project down in the Kootenay. Back then it was Discovery Venture. Name changed to $mxl. Their plan is to transport the ore to another mill (Max moly mine - closed; an excellent BC examle of a f_up)
0
click to invite
@tim_oliver @Tommy - Is the Pend Oreille mill the one shown in the presentation as being 1.5 hours away in Washington? $MRL
0
from @tommy,
1
click to invite
@tim_oliver Ah. Thanks @Rice. @Tommy, $MRL, that mill is about 26 miles away. Using $0.25 per tone-mile, the haul would cost about $6.50 per tonne ore. Add another $0.50 per tone at either end for load/unload and you have $7.50 per tonne. AZ Mining just released a PEA with total opex of $48 per tonne. I have no reason to think they are way off. It's an UG Zn operation, so the two are very roughly comparable. Conclusion: the haul cost of $7.50 per tonne is substantial and very well might render the Teck mill option uneconomic. Of course there is a huge offset on capex from not building a mill. But, what is the cost of using Teck's mill? It wouldn't be free. The two locations appear equidistant from Trail. So, concentrate haul costs would be about the same whether from a new mill at Salmo or the Teck mill. Also, if $MRL really expects to process lead, zinc, tungsten and gold, I see a lot of modification required to the Teck mill. So, the Teck mill option isn't without some significant capex. The only way to answer the question is with a trade off study, and that, of course, requires some engineering.
3
click to invite
@tim_oliver @Tommy $MRL - you question about gold grade and shipping doesn't have enough info to make a calculation and I'm not smart enough to hazard a guess.
1
click to invite
@tim_oliver @TOMMy, $MRL - sorting, to me, is one of those things that sounds good, but has too many problems in practice to trust. I'm sure there are examples where it works, but I don't have any knowledge. Hand sorting works for gems, but that's different.
1
click to invite
@Rice Each zone at the Jersey is separate, the Pb/Zn, Au and WO3 and as such would be mined at separate times. My understanding is that the Barkerville mine is applying ore sorting technology to their narrow but high-grade veins with some success. Dense-media-separator comes to mind with respect to upgrading Pb/Zn ore.
0
click to invite
@tommy Big thanks to those of who were able to comment on Margaux Resources $MRL. Not too late if you haven't had a first look already.I'm excited to visit the project(s) next month. Day trip from Van supposedly. Anyone want to come with?
1
from ~zinc,
click to invite
@ocotilloredux I'll need another day on $mrl. You can guess what I have been doing. wrt to $dbl , if it is any consolation the Kipushi NI 43-101 does not address the H2O issue there although their predecessors found it necessary to install 4,200 m3/h of dewatering capacity. Grouting static water is ten times easier than grouting flowing water since the grout tends to flush out before it is set in flowing situations. There are cheaper quick setting grouts these days though. So if that option is used, grout off around the mining targets first (before any area groundwater table activation to ensure a static environment), put a couple depressurization holes in the middle of the target once done and pump down the water table inside and watch for rebound to see how effective the grouting has been. wrt to dewatering there was a mention in the pdf of 60,000 gpm dewatering rate but I do not know the specifics and how applicable that would be for some of the mining targets.
2
from ~zinc,
click to invite
@EpsteinResearch Margaux Resources $MRL, is there a corporate presentation?
1
from #index,
click to invite
@ocotilloredux My revenue model output for $mrl at the commodity prices chosen. I will give my thoughts on site costs etc. tomorrow. I hope this copy/pastes well!
0
click to invite
@ocotilloredux Revenue Potential Concentrate grades: Zn- 57.6%, Pb 75% from NI 43-101 Concentrate recoveries: Zn- 90%, Pb- 90% from NI 43-101 No gold or silver credits. Treatment terms: Zn - $US180/tonne conc. , +0.10, -0.03, $US2,000/tonne Zn basis, 85% payable. Pb- $US200/tonne conc. , +0.04, -0.01, $US2,000/ tonne Pb basis, 95% payable. Commodity prices: Zn- $US1.50/lb Pb- $US1.10/lb Exchange rate: 1.33 Mining rate: 700,000 tpa Mining grade: 4% Zn 2% Pb Revenue model output: Zinc revenue/tonne ore mined: $US81.77 Lead revenue/tonne ore mined: $US36.76 Total $US118.03, $C156.97 Zinc revenue $US57.2M Lead revenue $US25.4M Total $ US82.6M $C109.0M Contained metal: Zinc in concentrate: 25,200 T Lead in concentrate: 12,600 T Payable metal: Zinc in concentrate: 21,420 T Lead in concentrate: 11,970 T Dry concentrate produced: Zinc concentrate 43,750 T Lead concentrate 16,800 T Total 60,350 T (dmt) Assuming 10% moisture content: 67,000 T (wmt) Assume concentrator on site and all concentrate is processed at Trail smelter. Distance to Trail: 55 km Haulage cost: $C0.20/km t assumes B-trains or road trains. Haulage cost/t conc.: $C11/wmt Annual haulage cost: $C737,000
4
click to invite
@ocotilloredux Posted part one of @tommy 's $mrl response there but forgot to link here.
0
from ~zinc,
click to invite
@ocotilloredux From Teck's latest annual report with respect to Pend Oreille located just across the border... "The current mine plan sustains the operation through to early 2018, although there is still significant potential to extend the mine life. We identified high-potential areas in the currently producing East Mine area and initiated a major exploration and drilling program during 2016, which will continue in 2017." Sounds to me like there may be spare mill capacity pending so I assume $mrl is trying to entice Teck to take a look here for shipper feed. If not, they should be. It would only be catching the top of the commodity price cycle. The strategy likely would not work at prices significantly lower than what I used above.
0
SEDI_bot Margaux Resources Ltd. $MRL just filed 2 reports. View full report: SEDI:MRL
1
from #insiders,
click to invite
@ocotilloredux Part 2 below. Items for clarification: Deposit depth. Mineral resources. Are these resources in undeveloped areas of the mine or is a significant portion contained in difficult to extract pillars? Status of mining permits. How quickly could a mine without mill get into production? The two options appear to be to ship ore to Pend Oreille (PO) or to build a mill on site for ore processing. For the first option, mining would have to fit into Teck’s existing production plans by taking advantage of spare milling capacity. So, considerable delays in obtaining permits, financing etc. could dash this scenario since the remaining PO mine life appears to be less than five years. Ideally a new ramp would be developed to access the resources such that is was not necessary to rehabilitate the old workings and rely upon access through them (assuming much of these workings are in bad shape after a +45 year closure). Hence ramp length depends on depth to the ore. The shipper option could be a low capital cost, potentially low operating cost option since the mine would not require a mill, extensive power requirements etc. This option could ideally be in the 1,000 tpd range using Tennessee style room and pillar mining methods. It would be sized to take advantage of spare milling capacity at PO. Since it is apparent old workings have held up well, a no-backfill mining approach would be taken, like past practice, to mine new areas, Regulations for shipping ore across the border require clarification but I note that Pretium shipped a 10,000 t bulk sample from Brucejack to the US for processing so approvals cannot be too onerous. The PO mill appears to be only about 45 km away. The building a mill on site option I think would require at least 2,000 tpd capacity for modest economy of scale purposes. Even so, the ore grade is low (but it is higher than the Tennessee zinc mines) so the operation would likely be a classic swing producer much like PO has been. Ideally, there should be at least eight years of resources for mining/milling implying an extraction reserve in the order of six million tonnes. Consider two million tonnes to be left behind in pillars supporting the back so ideally eight million tonnes of reserves would support a 2,000 tpd mill for eight years. (Mines with less than eight years of life tend to be overcapitalized and logistically difficult to execute and mines with greater than eight years will not impact project NPV significantly due to the time value of money.) So this means the need to define more resources in my mind for this option. Mining/Milling Cost Range Low cost example- Tennessee zinc mines. C$55-60/t ore Local cost example- Pend Oreille* C$101/t ore Additional cost example-Hudbay’s Lalor (2015) C$75/t mined + C$24/t milled + $C$6G+A = $C105 *Teck reports $C77M in revenue for PO in 2016 and $C0 gross profit before depreciation . In other words, expenses equaled revenue. 761,000 T of ore was milled (6% Zn, 1.3% Pb) resulting in a cost of C$101/t ore. The low cost example is likely only possible if all the stars aligned well so I would use the other examples as more reasonable. But it warrants a look if possible. Going back to my previous revenue model and varying the price of zinc (lead held constant at $US1.10/lb), I get smelter revenue before transport costs of: $US0.90/lb. $C114/t $US1.00/lb. $C121/t $US1.10/lb. $C128/t $US1.20/lb. $C136/t $US1.30/lb. $C143/t $US1.40/lb. $C150/t $US1.50/lb. $C157/t If site costs in the $C100/t are a reasonable assumption, zinc prices higher than $US1.50/lb. are likely required to cover initial capital, sustaining capital and other impositions including financing, royalties, concentrate transport, handling, umpire and marketing costs etc. The on site milling option would likely need zinc to be in the $US2.00/lb. range. So putting together a low operating cost/ low capital cost plan is likely the only means of making the project attractive at first blush. So I would 1) review the location of the resources to see if it is worthwhile putting together a scoping level mine plan, 2) do so if the answer is yes, 3) see if Teck has any interest in toll milling or joint venturing if there are no major impediments to permitting. The deposit is a classic swing producer by all appearances but the NI 43-101 does not provide ample information to determine whether what is left is mineable by low cost methods or not.
16
click to invite
@FreeBird @ocotilloredux, excellent as always.
1
click to invite
@tommy @ocotilloredux you're a star for those $MRL comments. Amazing food for thought.
3
from #index,
click to invite
@ocotilloredux We can't overlook the fact that the mine did produce for a couple decades so it is a matter of the economics coming back in their favor eventually (2019? 2029? 2039?) providing the remaining higher grade resources are not spread out all over the countryside. Have fun walking in those 45 year old openings next week @tommy. It means the ground conditions are superb. Don't look up.
1
click to invite
@tommy This morning I was reminded about a promise I made here a few weeks back. So I just sent a $1000 donation to SickKids, Canada’s top children’s hospital and research centre, in the name of the ~ZINC panel, for providing feedback on new CEO.CA sponsor, Margaux Resources $MRL. I especially want to thank @teevee for the history and @ocotilloredux for the action plan, which you can read in the Margaux channel: $MRL. I will be discussing this feedback with management and incorporating it into an upcoming site visit story and for that, we got more than our money’s worth. Thanks to everyone who participated. The late Canaccord CEO Paul Reynolds introduced me to SickKids. He was a passionate director. In 2014 Paul agreed to match donations to SickKids by CEO.CA subscribers. He was always looking for win-wins. RIP. http://cdn.ceo.ca/1cev6i9-Sick%20kids.png+ #index http://www.sickkids.org/AboutSickKids/index.html
19
from ~zinc,
click to invite
@ocotilloredux @BenjaminCox I am sure you are aware smelters actually recover 95-97% Zn but only pay 85%. The difference is "free metal" for the smelter. Another way they screw the miners over. #zinc ~zinc
3
click to invite
@DanO @Tommy I am writing something about $mrl. Almost done. Might post it later today or tomorrow morning if I'd get the rest of the work (that pays bills) done.
2
from ~zinc,
SEDI_bot Margaux Resources Ltd. $MRL just filed 5 reports. View full report: SEDI:MRL
0
from #insiders,
click to invite
@DanO @Tommy 'A few notes on Margaux Resources' $mrl on my home page @ www.miningandmoney.com I'll add it here later tonight or tomorrow.
0
from ~zinc,
click to invite
@tommy @DanO thanks for taking the time and sharing a bit of backyard history. Good disclosure feedback and I appreciate learning about your potential $MRL concerns. Dont agree with all of the conclusions but have a better feel for risks from reading your comments and enjoyed the writing. Margaux is still figuring out what they have and the best path forward. Significant work programs this Spring and Summer will help. Thanks again
2
from ~zinc,
click to invite
@Goldfinger Margaux Resources: Moving Closer To Becoming One Of North America's Next Zinc Producers http://energyandgold.com/2017/04/24/margaux-resources-moving-closer-to-becoming-north-americas-next-zinc-producer/ $K $MRL $zinc
2
from #index,
SEDI_bot Margaux Resources Ltd. $MRL just filed 12 reports. View full report: SEDI:MRL
0
from #insiders,
@thenewswire Margaux Resources Signs Drilling Contractor for its Upcoming Kootenay Arc Drill Program @thenewswire/margaux-resources-signs-drilling-contractor-for-its $CRMNF $MRL $MARFF #news/energy - Wade Critchlow Enterprises, a Salmo-based diamond drilling contractor has been contracted for a drilling program scheduled to be conducted in two phases, and is to include a minimum of 5,500 metres of diamond drilling on the Company’s Jersey-Emerald, Jackpot, Bayonne, Sheep Creek and Ore Hill properties in southeastern British Columbia.
4
from #newsroom,
@thenewswire Margaux Resources Signs Drilling Contractor for its Upcoming Kootenay Arc Drill Program @thenewswire/margaux-resources-signs-drilling-contractor-for-its $CRMNF $MRL $MARFF #news/energy - Wade Critchlow Enterprises, a Salmo-based diamond drilling contractor has been contracted for a drilling program scheduled to be conducted in two phases, and is to include a minimum of 5,500 metres of diamond drilling on the Company’s Jersey-Emerald, Jackpot, Bayonne, Sheep Creek and Ore Hill properties in southeastern British Columbia.
4
from #news/energy,
click to invite
@tommy Sponsor Margaux $MRL to launch minimum 5,500 metre BC zinc and gold drill programs May 15 @thenewswire Margaux Resources Signs Drilling Contractor for its Upcoming Kootenay Arc Drill Program @thenewswire/margaux-resources-signs-drilling-contractor-for-its look forward to getting to site in the next few weeks
2
from #index,
@newsfile Margaux Resources Completes Phase 1 of its Kootenay Arc Diamond Drill Program @newsfile/margaux-resources-completes-phase-1-of-its-kootenay $MARFF $MRL $CA56660Q2045 #news/mining Six holes on five sites have been drilled on the Jersey-Emerald property, totalling 1,121 metres of NQ2 drilling.
2
from #newsroom,
@newsfile Margaux Resources Completes Phase 1 of its Kootenay Arc Diamond Drill Program @newsfile/margaux-resources-completes-phase-1-of-its-kootenay $MARFF $MRL $CA56660Q2045 #news/mining Six holes on five sites have been drilled on the Jersey-Emerald property, totalling 1,121 metres of NQ2 drilling.
2
from #news/energy,
click to invite
@anomalloy WHAT happened on the Weekend : At the opening on Monday, May 29, 2017, $FWZ, $IOM, $TCC will be listed on the TSX Venture. FWZ will be immediately halted. $NHK moves from Venture to TSX. $ASG, $BAA, $BMM, $CNZ, $EDV, $EOM, $HSE, $IOG, $GKX, $HOIL, $MDI, $MKR, $MRL, $RIC, $SDX, $STRS, $SVS, $WLF Insiders buying $AQN, $AZT, $EVM, $PLI, $SIR
3
from #ninjapicks,