RCH richfield group limited

sorry decimal places were wrong

  1. 1,057 Posts.
    This a list of what I have ascertained so far:

    1. The disclosed resource size is world class (top 2) in 100Mt @ .20% MOS2 (0.12%MO) with 55Mt @ 0.24%MOS2 (0.144%MO).

    2. Most of the premier pure Moly mines or to be a mine run at around 0.05% to 0.08% MO.

    3. RIO unofficially considered the resource size 200Mt @ 0.20MOS2

    4. RIO rated it world class and kept at it in the 70/80's despite an antaganistic Indonesion Mines department which in that period brought in a COW agreement that ceded 50% of mineral resources to a local. RIO is still the only company to sign the agreement al other foreign companies refused. MO prices also slumped to $US5lb for 10 years and this still did not stop RIO's determination to progress this top line project. It was not until RIO, after 12 months of signing the COW, started to lobby for a change of agreement to a new one that can come out and was mush fairer but the Mines department wouldn't let them off the hook and after a battle of wills, the mines department refused to renew RIO's licence. It has laid dormant for the past 25 years until 3 years ago when this deal started to be put together.

    5. The above MO/MOS2 grades are after I have adjusted for the drilling, cutting and assay errors. RIO and Santo were well aware of the consistent errors and would in about every 10 samples send a full core to be processed under a different method at a different lab to keep track of the error. The error they have disclosed is 33% but in fact this is considered conservative, some errors were 100%. I wont go into it right now about the water washing action down a diamond drill to the face and also when cutting wash the greasy Moly out of the sample. The Assay problem was in using the type of grinding and spectromoter.

    6. There are 34 holes drilled. By Santos and Rio. These hole delineated the shape and dip of the orebody and confirmed some very high grades and long widths etc. However many of the holes were drilled at the wrong angle in the wrong direction. That's probably typical when you are trying to work out which way things run and you didn't have access to modern geophysical techniques. To take it to JORC it will need about 40 holes at the correct angle in the correct direction, both these inputs are now ell understood.

    7. This is a pure Moly resource. There are no other metals which gives you a higher purity and lower capex.

    8. There are several satellite deposits as mention in the material released. These have never been drilled but have been trenched and sampled etc. The grade is believed to match the major deposit at Anomaly B.

    9. RCH has recruited the original Santos geologist who knows the resource well.

    10. It is clear that RCH does not have the financial capacity to take this large project forward by itself. An early JV partner is a must. I reckon this is happening now and hopefully we will get an early result here rather than later.

    11. The numbers are breathtaking when you run these grades through a BFS model. I've covered those separately but will state them again if need.

    12. Conclusion. If its what RIO thought it was (200Mt @ 0.20MOS2), then it will be the worlds best Moly Mining operation with a very large IRR. A bonus is that most of the suer high grade core can be extracted by open pit mining.

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