Reply to thread

I was doing some tinkering the other day while home from work with a bum knee and came up with an "uneducated" calculation of what Cooljarloo means to Image.

I used the drilling results of target 2 posted in the quarterly report which was a part of the claimed 100% image owned 120km of HM targets in Cooljarloo.

Now don't quote me on this as i have no idea of all the factors involved in the estimate process, i only used my humble logic.

Variables:

L= Length; 120km announced

W= Width; Median width from a couple of news reports ~ 30m (news reports claimed 20-70meters, can't find the link where is saw that now )

D= Depth; Using an average depth of HM drilling by the 192 drilling results.  Average from report = 6.182291667

Simple volume calculation to start with, all units converted to meters (m):

V= L x W x D

V= 120,000 x 30 x 6.18

  = 22,248,000m ³

Average % Heavy Minerals of the samples retrieved from the 192 holes was 5.957291667, so:

Volume of HM = 0.0596 x 22,248,000

                   =1,325,980.8cm ³

 

A little research and i learn mineral sands have on average 4.5 times the specific gravity of water. Which entails that if 1m ³ of water weighs 1 ton then 70,852m ³ of HM equals:

70,852 x 4.5 = 5,966,913 tonnes

O.K. so this would be the perfect result, i know thats not likely so I'll take half of that. 2,983,456 tonnes.  Thats still ridiculous!

If you change the HM% grade to a low grade 1.1%, you get 244,728m ³ ~1,101,276tonnes.

Using this low grade guesstimate and using average distribution shown on Wiki http://en.wikipedia.org/wiki/Mineral_sands

 

Zircon       10% =   110,127    @ $400/ton ($800 spot price)= 44,050,800   

Rutile        10% =   110,127    @ $250/ton ($500spot)        =  27,531,750

Ilmenite    20%  =   220,255    @ $44/ton ($88spot)           =   9,691,220    

Luexcoxene 5%  =    55,063     @ $211/ton ($422spot)       = 11,618,293

Junk         55%  =   605,701

Total                                                                          = $92,892,063

I have no idea how much it costs to mine the stuff nor do i have any idea how mining companies value the estimates, nor do i know how the distribution of the mineral content should be, but considering this is only the first discovery and the others are supposed to be even bigger i think its a pretty good sign.

Undiluted shares are knocking around 82,214,642 as at Dec 2007. Market value for the company at this time is around $106mil ($1.30).

This is my first attempt at this, I would be interested to hear what you think .

I welcome the criticism.

Tukker