Sunday, December 6, 2015

Top 10 Chidliak Assets

It is a bit early to quantify a full 10 assets at Chidliak and come up with a valuation.
However, this will change dramatically once the bulk sample results (grade, valuation) come out of the various domains of CH-7. In the meantime, highlighted in the table below is some conceptual values and these will change over the next 3 to 6 months as real results come in.


The table is split into two sections.

The first contains the open pit for CH-6 and the small open pit at CH-7 (Domain 5). These are the highest grade values in all of Chidliak to date and will be mined first and foremost to get the most out of the NPV of the project. Included is also tax benefits from huge amounts of expenses to date. This will have significant impact on tax relief over the first few years of the Chidliak mine and cannot be discounted in the economics.

The second one contains the rest of CH-7 open pit that will be used to extend the mine life. This is all conceptual as real values and grades are still to come and those results will also determine how deep an economic pit is possible at CH-7. Also included in this section is the CH-6 - other. This is the minor kimberlite phase from CH-6 that composes 20% of the body. This has never been quantified for carat value or grade and can only go on micro grades to come up with a conceptual value. CH-6 - other will be blasted in the pit walls of CH-6 kimL, so the material will be milled eventually, but will not be as important as far as NPV as compared to the other material.

Comments:
The top asset (CH-6 kimL) is getting a resource update very soon and all those values could increase 30%. Also, on the same asset, the PEA (preliminary economic assessment) could show a 20 to 30% downward adjustment in value based on the decline in the diamond resource market since the original valuation model was done.

Both CH-6 and CH-7 kimberlites are open at depth and to date have only been considered for open pit. This should change in the future.

3 comments:

  1. It still needs to be updated.

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    1. Agreed it needs to be updated..but we are hours or days away from inferred updates for ch6 and 7. I will be changing a lot of those 'conceptual' to inferred. I'll update this once those results come out. Thanks for checking in.

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