Panmax and Cinema
Yup, tonnage is very important for ZEN. Currently, we have a good section containing holes 4,5, 8,9 &10. For 10, the visuals look fine, but Lab results will be required to deliver the verdict. Before we can start doing some initial estimate of a potential deposit we need at least two step-out holes on both sides of this section (i.e. to the west and east). A 100m step-out is fine initially. If we got something similar, e.g. a few 100m intercepts with ave. grade of say greater than 5% then Zen would be flying.
If the production costs is low enough, say around a few thousands USD/tonnes (could be a conservative), we don't even need a price of $25k/tonne for high purity graphite. A price of $10k/tonne would give a decent profit margin, say $5k/tonne profit. A production rate of 20,000 tonne Cg/year would result in $100M/year profit, which is plenty for a small company. We could speculate the SP for this kind of profit. How about a 5-bagger?
It's understood that Aubrey wants to start with some baby steps first (e.g. 20,000 tonne Cg/year) for a manageable Capex, say $100 -200 M, then scale it up to any desirable capacity x2, x4, etc...depending on the market demand.
This conservative approach is much better than diving in head first with some $0.5B+ Capex requirement for a much larger facility. There may be some rocks under the water.
goldhunter