Re: Iron Ore Prices
in response to
by
Welcome To the Copper Fox Metals Inc. HUB On AGORACOM
CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)
Message: Iron Ore Prices
That makes a lot of sense that there might be some last minute fine tuning of the BFS, especially as it relates to pricing. The nice thing is that iron ore is coming down and 3 yr metal price averages are going up still from late 2009. I wonder if they'll have to use some sort of 3 yr average for iron ore too however - I guess we'll see shortly.
No doubt that Merit and Matt Bender had some comments on the economics of the project; if I recall correctly from the AGM, Cam Grundstrom had contracted people to "rip apart" the BFS to find any holes. At the end of the day, economics based on realistic scenarios is what matters the most and this has been stated all along.
Btw, interesting to see TetraTech's report on the Ajax feasibility too (lots of good case studies in addition to KSM that one can learn from). Lots of players involved in doing a FS, even lots of unnamed smaller suppliers and contractors in addition to the bigger engineering firms. Any number of parties could have been missing deadlines on our project, even though it has been Wardrop that was in charge and does bear the majority of the responsibility it seems.
Bring on the BFS - time to lay the cards on the table.
From p. 3 of Ajax TetraTech report: http://www.tetratech.com/pdfs/64/Case_Study_KGHM_Ajax_Feasibility_Study.pdf
2. BACKGROUND TO THE PROJECT
Following the release of a Preliminary Economic Analysis (PEA) conducted by Wardrop in June 2009, Abacus commissioned a team of engineering consultants to complete a Feasibility Study on Ajax, in May 2010. Tetra Tech WEI (formerly Wardrop Engineering Inc.2) was appointed as lead consultant with commissioned to complete the component reports for the purposes of the feasibility study:
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Wardrop, a Tetra Tech Company (Wardrop) - overall
management, mineral processing, infrastructure, and financial
analysis
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AMEC Americas Ltd. (AMEC) – geology, Mineral Resource
estimate, mine design, and Mineral Reserve estimate
-
Golder Associates Ltd. (Golder) – tailings handling, thickening
and tailings area water management
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Knight Piésold Ltd. (Knight Piésold) – environmental studies,
permitting, and social or community impact
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BGC Engineering Inc. (BGC) – pit slope designs, pit dewatering
evaluations and site geotechnical evaluations, excluding the
tailings storage facility
In addition, G&T Metallurgical Services Ltd. (G&T) conducted the metallurgical testwork, and Krupp Polysius performed the High Pressure Grinding Rolls (HPGR) pilot test work for the process design.
The Ajax Project will be a 60,000 t/d open pit operation with
an annual production of copper/gold concentrate containing approximately 110 million pounds of copper and 100,000 ounces of gold. To date, the client is on track with following the consultation process with stakeholders and obtaining the required permitting.
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