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Hydrothermal Graphite Deposit Ammenable for Commercial Graphene Applications

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Message: Re: End-User Economics - Why the delay...
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Dec 11, 2014 04:44PM

Economics. Cash in, cash out...thats what this is all about.
establishing as high of an economic value as possible for the PEA.

What does that include,

a) Optimizing flowsheet/processing (Costs):
- SGS requested additional time for this, as per the June NR:
The test work is proceeding well. At this stage of a mineral project, tweaking of a process flow sheet is quite common and is especially so for Zenyatta’s unique Albany deposit. We expect to develop a distinctive process for this graphite deposit.”

As per the September NR:
"This optimization work will provide additional information for the flow sheet and the preliminary economic assessment (PEA) which is to be completed in the 4th quarter."

- ZEN has mentioned in its NR's in the past that it has obtained 99.9%+ via off-the shelf processes, so why would they target developing a unique (and patented) process....maybe because it is even cheaper and even more effective than the off the shelf processes? gee, ya think

- AE has made mention (taken from AGM summary notes), of patenting this process being developed, I wonder why...

- Ken Stowe, an industry renowned chesmist/metallurgist signed up in August 2014...you think someone like that would be a further asset in this process? uhh, yep


b) Sales price(s) (Revenue):

- Remember this isnt ZEN attempting to dig up graphite process it and ship it off in bulk for resale....this is ZEN targetting END-USERS for final sale. No middle salesman, no middleman milling/refining of the graphite. This is ZEN start to finish.
"The Company will continue to produce a high purity graphite product (for various applications) with strict specifications based on dialogue with interested end users under a signed confidentiality agreement.”

- Multiple end users around the world are testing this stuff. There is multiple tailored characteristics for each user. And likely various selling price points for each. I dont know about you, but ZEN would likely only be targeting world class companies who have strict and stringent specs to follow. Chahar has stated this is a lengthy process with alot of back and forth discussions...it doesnt take these companies a few days to do this stuff. This is an in depth process.

- Letters of Support/Letters of Intent. If these companies are testing the graphite throughout 2014, would you not wait for them to complete testing, and if successful sign letters of intent/letters of support for the Albany Graphite? 3rd party support direct from end-users for selling prices, that would be huge.

- Roskill has been contracted to do an in depth study on ZEN's graphite, you think it would be beneficial to combine that with actual end user feedback/letters of support to establish high quality pricing in a PEA....

My suspicion is that flow sheet is done and the end user testing is wrapping up and those price points are being evaluated for inclusion in the PEA.


ZEN BASHERS CHECKLIST:
Bashers will tell you that ZEN is having issues and is hiding behind NDA's...they are not hiding behind a damn thing! they are waiting on THIRD PARTIES. SGS>RPA>END USERS...third parties.

Bashers will tell you that ZEN cant get support for its prices, what better support than a tailored report from a world class marketing firm (Roskill) combined with end user verification (letters of support).

Bashers will tell you that ZEN is having processing issues and cant get a flow sheet to work...to that i ask, would insiders be buying shares after pilot plant completion if there were flow sheet issues? would a world class metallurgist join ZEN in August 2014 if there were flow sheet issues?

Bashers will tell you that because ZEN is resorting to developing a unique process for this graphite that it will cost more than CCB who used off the shelf processes? ZEN has already hit 99.9+ using off the shelf processes, and call me crazy, but i dont think ZEN would be pursuing higher processing costs. so, ya...throw that theory out the window.


only a matter of time before the ZEN bashing crew eats their words.
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