Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
In the process of buying CTEQF yesterday, I learned something new.
I wanted to buy a good chunk of shares. I called Fidelity and they put me through to the international trading desk. They told me that I could place a limit order or market order and that they would forward the order to the ASX for trading Sunday night, their Monday morning. The cost would have been about $223.00.
The other option was to buy in our OTC market and that an additional $50 charge would apply to each order that was fully or partially filled. This was around 1:05 ET and only 11,000 shares had traded. The bid was 1000 shares @ .525 and the ask was 1,000 shares at .56. I told the representative that it looked like it would be impossible to buy what I wanted with such low volume and that I would end up with a ton of additional $50 fees.
This is what was new to me. The representative asked how many shares I wanted and what I would be willing to pay. I told him 54,000 shares @ .55. He then told me to hold while he checked with the market maker. He came back on the line and said the market maker will fill that order. So, I placed the order and it filled within seconds.
I have seen plenty of blocks trade on stocks with a low number of shares on the bid and ask, but, it never dawned on me to prearrange a transaction in this manner. Now I know!
dadofmarcmax, I came across this yesterday while researching Clean Teq Holdings. No problem though, Ivanhoe Mines has plenty on their plate.
Syerston Project Overview
In 2004, Ivanhoe Mines acquired the project from Black Range Minerals and in 2005 Ivanhoe completed a revised Feasibility Study with SNC-Lavalin. In May 2006, the development consent was triggered on the project. The project did not proceed to full development due to the prevailing base metal prices at the time. Clean TeQ acquired the project from Ivanhoe Mines Ltd (TSX:IVN) in 2014.
Since that time, Clean TeQ has completed a Feasibility Study for a small scale scandium-only project designed to produce 50tpa scandium oxide from some very high scandium grade areas on the periphery of the main laterite deposit.
Clean TeQ also completed a Pre-Feasibility Study for a large scale nickel/cobalt/scandium project.
The Pre-Feasibility Study revised the estimates of the previous feasibility studies undertaken in 2000 and 2005 and integrated Clean TeQ’s technology into the proposed processing flow sheet to produce battery grade nickel and cobalt sulphates - key raw materials required by the lithium ion battery sector - and by-product scandium oxide. A Bankable Feasibility Study is underway for the nickel/cobalt/scandium project, due for completion in 2017, Q4.
http://www.cleanteq.com/wp-content/uploads/2016/12/Syerston-Overview-1.pdf
Robert Friedland stated that he owned 20% of Clean Teq during yesterday's presentation.
That is some presentation!
I'm fully loaded with IVPAF, so, I just bought some CTEQF, Clean Teq Holdings. It's an Australian company.
Heads UP - Fidelity has a $50.00 add on commission for CTEQF orders. Other brokers may not.
1/31/17 14:54
Copper + .07
CAD$ + .005
http://www.finviz.com/futures.ashx
Bullish article on palladium. Ivanhoe Mines mentioned -
http://www.mining.com/web/silver-lining-violent-stunning-historic-collapse-palladium-profit/?utm_source=digest-en-mining-170129&utm_medium=email&utm_campaign=digest
Mikesc
Monday, 12/21/15 02:55:12 PM
Re: None
Post # of 89042
From IR on Patent question.
As a matter of strategy, many applicants “over claim” and then, during the course of prosecution, one arrives at the broadest allowable claim. To start with an allowable claim suggests that the applicant received less scope in the patent than may have been possible.
From IR on patent question -
As a matter of strategy, many applicants “over claim” and then, during the course of prosecution, one arrives at the broadest allowable claim. To start with an allowable claim suggests that the applicant received less scope in the patent than may have been possible.
Your statement -
Side note - when you read non final rejection - you see the techicalities in filing and how much detailed reading -analysis and questioning patent office is doing. It also shows that patent application was not filed effectively as the number points went from 27 to maybe 6 or 7.
Thanks for posting this Dropbox link for the Kakula conference call -
https://www.dropbox.com/s/dr0anm4njyzp65d/2016-12-15%20Kakula%20PEA%20conference%20call%20recording.m4a?dl=0
Do you know if the Kipushi conference call is on Dropbox?
I copied this from the other board -
Portion of the 11/28 conference call. Robert Friedland speaking. The conference call will be archived for later playback until December 12, 2016 and may be accessed by dialling +1 905-694-9451 or 1-800-408-3053 and entering the passcode 4305756.
Kipushi
On Financing:
I think we can just tell you that great mines always get financed. That's rule number one. And I can also make the editorial observation that the wind is very clearly now at our backs. We used to be developing these assets with the wind blowing in our face. So we now have a favourable tail wind, to say the least. In fact, earlier today copper nearly touched $6,000 a tonne in London, and we don't think the rally's over yet. So it's fair to say, as we've said in the past, that we have been approached by numerous — primarily financial — investors, as well as international industry participants in all of our assets. So a lot of the capital cost to put Kipushi in production has already been borne; every day we're effectively putting the mine back in production. When we rebuild the winders and the shafts and the skips and the Maryannes and the underground development, we are essentially going ahead with the capital to redevelop the mine. So when we give you a new pre-feasibility study in the second quarter of 2017 we do expect the capital cost to be lower than it was a year or two ago by virtue of the fact that we are developing the mine now! It's essentially being redeveloped now.
On Corporate Activity:
So far as our alternatives are concerned, as we've indicated publicly in the past, they range from bankers and investors interested in us taking Kipushi public as a pure play on zinc, which could be done with or without our partner, Gecamines, through a joint venture, or a joint public listing with other parties, or do an outright and complete sale. If our shareholders think that that is an attractive thing to do we might go in that direction. We don't negotiate against ourselves in the media, and we don't negotiate in public. All we can tell you is that we are feeling better about our condition in the industry and in the evolution of these assets than we have ever felt in a twenty year period. We have never been as strong as we are today, and we've never felt that we had as many suitors that would like to marry us as we have this evening. So I'll just leave it at that. Thank you.
On Developments in the Zinc Market:
We've also seen a very significant reduction in transportation costs. So there's clearly a panic for zinc concentrate by the smelters. That's definitely the case, since we've had an incredible decline in the costs [treatment charges]. We've also seen an incredibly significant reduction in transport costs. So all the factors are now at the moment quite beneficial, with higher metals prices, greater interest from industry and financial people, and reduced treatment and transportation costs. So I hope you keep tuned to the second quarter of 2017 when the Big Zinc will nearly be back in production.
On Progress at the Big Zinc:
You can go up there and literally kiss the Big Zinc. When we bought the asset the mine was flooded, and the Big Zinc was sort of like the Loch Ness Monster: some people claimed to have seen it many times, but it was definitely under water. Now you can go down there and kiss Loch Ness Monster any time you like. We think an 80-metre-thick ore body with 35% zinc — with all the other metals, 42 or 43% equivalent — speaks for itself.
On Capital Savings:
We do think the capital cost is coming down. And how far is it coming down? Well, the more the better, actually. But as the price of the metal skyrockets - last time I checked it's up 70% since January 1 — we are less and less sensitive to capital costs. So we are looking at extremely attractive rates of return. Now, how good is extreme? Well, we'll let you know at the end of the second quarter when the numbers are independently audited.
On a Production Decision:
I think we've already made the decision to put the richest zinc deposit in the world into production. It's just that we can't give you the parameters around that decision without announcing an independent study. We've spoken to Chinese players who've said, "why are you even bothering to do a feasibility study on the richest zinc mine in the world?!" It's by definition richer than the other zinc deposits by a very wide margin, so by definition, it should be more economic, given that the capital has already been sunk. This is a brownfields restart, not a greenfields development. I think Kipushi is an asset that is not really understood by the mining industry. I think that the continued drilling down-dip, the scale of the potential resource, and the unique geologic setting reminds me of what Dr Murray Hinzman told me. Dr Hinzman is the head of the geology department at the Colorado School of Mines, and he made the remark that he thought that "the crack in the earth at Kipushi is the richest crack in the earth, period, full stop." It rivals any ore in the world. It's a lot more valuable per tonne than Voisey's Bay was, and you can go down and touch it.
Kamoa-Kakula
On Capital Commitments:
There are no particular capital commitments in our agreement with the Congolese government. There is no reference to the capital commitments. We are the owner of the licence. We have all the rights, environmental rights and approvals, to go ahead and develop the mine, but we are not subject to any particular schedule or capital commitments. Of course, we want to develop a historically important groundbreaking mine as quickly as we can do so safely and efficaciously.
On Exploration Opportunities:
We hold about a 460 square kilometer mining licence, which holds essentially a perpetual mining right. Everything developed on that licence would be subject to this new agreement with the Congolese government and in fact with Zijin, our current partner. Outside of that area we hold a lot of very important proprietary geological information about where there very well might be additional Kamoas or Kakulas. However, all of that work would be only for our own account, subject to the government's interest of 5% under the 1912 mining law. So we do have a broad regional interest in exploration which would be held totally by Ivanhoe Mines and would not involve our joint venture with Zijin or in fact this new agreement with the Congolese government. And in future I hope we can tell you more good news about where we hope to find more Kakulas.
On Financing:
We see no issue in procuring debt finance in China, let alone from other international sources. The highest grade copper mine in the world always gets financed.
On Kansoko Sud vs. Kakula:
The declines in both cases are production declines. And there's nothing to say you can't mine 4 million tonnes a year at Kakula, and also mine 1 or 2 million tonnes a year of much higher-grade ore out of Kansoko Sud. They can both supplement each other. They're both giant resources. It's just that the very best is the enemy of what used to be the very best, but is no longer the very best. It's in the miserable nature of our business that the best ore always is supposed to get to the concentrator first. It's a nice, elegant problem to have.
On Kakula Resource Estimation:
When we announced the first estimate it was already obsolete by the time we announced it.
On the Current Drill Programme:
We're running about five rigs to the rain. We have been doing some step-out drilling, particularly to the north-west, and I think I can tell you that we will probably be updating the Kakula resource for many years. For many years. Geologically it's open in many directions, and there may be more Kakulas to come!!!
Cameco Corporation is based in Saskatchewan and is one of the world's largest uranium producers. They are dual listed: NYSE - CCJ TSX - CCO.
Goldcorp, Barrick Gold, Agnico Eagle Mines are the 3 other companies that I looked at and all 3 are listed on the NYSE and TSX.
I imagine that IVPAF will up list to the NYSE as soon as they qualify.
A NYSE listing gives a Company more credibility and better access for investors.
Kamoa/Kakula cracks the top ten before our upcoming resource update.
http://www.mining.com/the-worlds-largest-copper-mining-projects/?utm_source=digest-en-mining-170125&utm_medium=email&utm_campaign=digest
Paul Gait of Bernstein Research...
Ivanhoe Mines (CN:IVN) has got the market excited again with news that step-out drilling from its Kakula discovery, part of the Kamoa-Kakula copper project in the Democratic Republic of the Congo, has struck serious mineralisation outside of the existing resource base.
Paul Gait of Bernstein Research, one of the project’s biggest fans, said he expected Kakula would eventually reach between 150-200Mt of high-grade resource compared with the 85Mt (at a 4% Cu cutoff) combined indicated and inferred base the company had delineated.
http://www.mining-journal.com/financeinvestment/exploration/ivanhoes-kamoa-kakula-gets-bigger/?utm_medium=email&utm_campaign=Mining%20Journal%20Free%20Daily%20Briefing%20%20View%20from%20the%20West%20End%20Alternate%20nuclear%20facts%20Ivanhoes%20Kamoa-Kakula%20gets%20bigger%20Top%20marks%20for%20Rios%20CA%20sale&utm_content=Mining%20Journal%20Free%20Daily%20Briefing%20%20View%20from%20the%20West%20End%20Alternate%20nuclear%20facts%20Ivanhoes%20Kamoa-Kakula%20gets%20bigger%20Top%20marks%20for%20Rios%20CA%20sale+CID_41f2f160e1bf49c173c210b80e7110a2&utm_source=Campaign%20Monitor&utm_term=Ivanhoes%20Kamoa-Kakula%20gets%20bigger
Bernstein has a $10 Canadian price target.
I feel that Ivanhoe will hit that and a lot more over the next couple years.
"speechless"
"It is remarkable to drill a step-out hole more than 1.6 kilometres beyond the limits of the previous mineral resource boundary and intersect almost identical, high-grade, chalcocite-rich mineralization," said Mr. Friedland.
"The open-ended nature of the extremely high-grade copper mineralization at the unfolding Kakula Discovery certainly has caught the attention of the mining industry. The ongoing results speak for themselves - and leave me speechless."
New drill results significantly expand Kakula Copper Discovery at the Kamoa-Kakula ProjectStep-out drilling extends length of Kakula Discovery by approximately 1.6 kilometres, or 40%, to at least 5.5 kilometresKakula and Kamoa both remain open for significant expansionNew resource estimate and preliminary economic assessment being fast-tracked to examine expanded Kamoa-Kakula development options
MARKET WIRE 6:30 AM ET 1/23/2017
Symbol Last Price Change
IVPAF 2.7733up 0 (0%)
QUOTES AS OF 03:59:09 PM ET 01/20/2017
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO -- (Marketwired) -- 01/23/17 -- Ivanhoe Mines(IVPAF)Executive Chairman Robert Friedland and Chief Executive Officer Lars-Eric Johansson today announced assay results from another 25 holes as part of the ongoing 2016-2017 drilling campaign at the Kakula Discovery on the company's Tier One Kamoa-Kakula Copper Project, near the mining centre of Kolwezi in the Democratic Republic of Congo (DRC).
The Kakula Discovery remains open along a northwesterly-southeasterly strike. Massive potential for resource expansion is considered to remain within the Kakula Discovery area. High-grade, chalcocite-rich copper mineralization has been outlined along a corridor that currently is approximately one kilometre wide and at least 5.5 kilometres long (see Figure 2).
The latest drilling results further reinforce the exceptional continuity of high-grade copper mineralization and the relatively flat-lying geometry. Highlights include:
DD1093, a step-out hole drilled 1.6 kilometres northwest of the current boundary of Kakula's current Inferred Resources, intersected typical Kakula-style mineralization similar to holes drilled in the centre of the high-grade Kakula Discovery. The hole intersected 11.10 metres (true width) of 5.82% copper at a 3.0% copper cut-off, beginning at a downhole depth of 993.0 metres; 11.10 metres (true width) of 5.82% copper at a 2.5% copper cut-off; 11.90 metres (true width) of 5.57% copper at a 2.0% copper cut-off; and 12.88 metres (true width) of 5.26% copper at a 1.0% copper cut-off. A photograph of the mineralized intersection in hole DD1093 is shown in Figure 10.
DD1080, drilled 1.0 kilometre northwest of the boundary of Kakula's current Inferred Resources, intersected 4.49 metres (true width) of 8.51% copper at a 3.0% copper cut-off, beginning at a downhole depth of 857.6 metres; 4.99 metres (true width) of 7.96% copper at a 2.5% copper cut-off; 4.99 metres (true width) of 7.96% copper at a 2.0% copper cut-off; and 10.23 metres (true width) of 4.75% copper at a 1.0% copper cut-off.
DD1065, drilled 300 metres northwest of the boundary of Kakula's current Inferred Resources, intersected 6.24 metres (true width) of 6.44% copper at a 3.0% copper cut-off, beginning at a downhole depth of 638.0 metres; 7.24 metres (true width) of 5.96% copper at a 2.5% copper cut-off; 8.39 metres (true width) of 5.43% copper at a 2.0% copper cut-off; and 8.39 metres (true width) of 5.43% copper at a 1.0% copper cut-off.
"It is remarkable to drill a step-out hole more than 1.6 kilometres beyond the limits of the previous mineral resource boundary and intersect almost identical, high-grade, chalcocite-rich mineralization," said Mr. Friedland.
"The open-ended nature of the extremely high-grade copper mineralization at the unfolding Kakula Discovery certainly has caught the attention of the mining industry. The ongoing results speak for themselves - and leave me speechless."
In addition to the three step-out drill holes highlighted above that extend the Kakula Discovery to the northwest, hole DD1079, drilled 400 metres southeast of Kakula's current Inferred Resources and beyond a line of poorly mineralized drill holes, intersected significant Kakula-style chalcocite mineralization within a siltstone unit. The hole intersected 3.51 metres (true width) of 3.63% copper at a 3.0% copper cut-off, beginning at a downhole depth of 851.0 metres; 3.51 metres (true width) of 3.63% copper at a 2.5% copper cut-off; 3.51 metres (true width) of 3.63% copper at a 2.0% copper cut-off; and 3.51 metres (true width) of 3.63% copper at a 1.0% copper cut-off.
"This hole provides profound encouragement for the potential continuity of Kakula-style mineralization along strike to the southeast," said David Edwards, Geology Manager for the Kamoa-Kakula Project.
In response to the spectacular exploration success, Ivanhoe Mines(IVPAF) and Zijin Mining have accelerated the Kakula exploration program with the mobilization of additional contracted drill rigs. Nine rigs now are drilling at Kakula, focused in the northwest resource expansion area, where the aim is to initially infill an area of 2.6 square kilometres immediately northwest of Kakula's current Inferred Resource boundary. Infill drilling of Inferred Resources is ongoing in the central section of Kakula. To the southeast, step-out drilling is continuing to explore extensions of the Kakula high-grade zone along trend. The current Kakula drill plan is shown in Figure 2.
Ongoing geological studies leading to new Kamoa-Kakula exploration targets
In addition to exploring along the Kakula trend, significant overall potential exists both within the Kakula exploration area and on the Kamoa-Kakula mining licence as a whole. Approximately 200 square kilometres of the 400-square-kilometre Kamoa-Kakula project area remain untested.
The Kamoa-Kakula geology team, with the assistance of its technical advisors, is intensively evaluating the structural and stratigraphic controls on mineralization of the broader Kamoa-Kakula basin. This project is intended to define and rank priority targets located in the untested parts of the licence.
Initial work has highlighted a number of high-priority drill targets that are planned to be tested this year. Figure 3 highlights the expansive area of the mining licence that remains to be drill tested in relation to the currently defined Mineral Resources, as well as showing some of the exploration targets that are being investigated.
Figure 1. Kamoa-Kakula Project map shows the initial development area for the Kansoko Mine and the adjacent Kakula resources area.
http://media3.marketwire.com/docs/1083518f1.jpg
Figure 2. Planned exploration drilling over the Kakula exploration area for Q1 2017 and Q2 to Q4 2017 showing current and future target areas and locations of recent significant intersections.
http://media3.marketwire.com/docs/1083518f2.jpg
Figure 3. Kamoa-Kakula mining licence showing copper grade of Indicated and Inferred Resources at a 2% copper cut-off, untested areas and current target areas.
http://media3.marketwire.com/docs/1083518f3.jpg
Figure 4. Drill-hole location plan for the Kakula discovery area shows holes completed and in progress, superimposed on 1% composite grade-thickness contours.
http://media3.marketwire.com/docs/1083518f4.jpg
Figure 5. Location Plan showing grade and thickness of recent results superimposed on 2.0% composite grade-thickness contours.
http://media3.marketwire.com/docs/1083518f5.jpg
Figure 6. Location Plan showing grade and thickness of recent results superimposed on 2.5% composite grade-thickness contours.
http://media3.marketwire.com/docs/1083518f6.jpg
Figure 7. Location Plan showing grade and thickness of recent results superimposed on 3.0% composite grade-thickness contours.
http://media3.marketwire.com/docs/1083518f7.jpg
Figure 8. Strip-logs of drill holes DD1021, DD1070 & DD1032 showing typical Kakula-style mineralization.
http://media3.marketwire.com/docs/1083518f8.pdf
Kakula exploration program has been accelerated, with nine rigs now drilling in a bid to further expand the discovery area.
http://media3.marketwire.com/docs/1083518i1.jpg
Figure 9. Section along the axis on the Kakula Deposit on the section A-A'-A" showing drilling completed to date and composites at a 3% copper cut-off.
http://media3.marketwire.com/docs/1083518f9.jpg
As shown in Figure 9, the Kakula Deposit is a gently-dipping blanket of thick, chalcocite-rich copper mineralization. Initial mine development is planned to begin in the flat, near-surface zone highlighted in the inset which, at a 3% cut-off, is between 7.1 metres and 11.7 metres thick and with copper grades between 8.11% and 10.35% along the deposit's axis.
Figure 10. High-grade copper intersection in drillhole DD1093.
http://media3.marketwire.com/docs/1083518f10.jpg
New Kakula Mineral Resource estimate expected early in Q2 2017
Ivanhoe Mines (IVPAF) expects to produce an updated Mineral Resource estimate for the Kakula Deposit within 90 days. The initial Mineral Resource estimate for Kakula - the second major discovery on the Kamoa mining licence - was detailed in Ivanhoe Mines'(IVPAF)October 12, 2016, news release. Based on approximately 24,000 metres of drilling in 65 holes, Kakula contained Indicated Mineral Resources estimated at 66 million tonnes at 6.59% copper, plus Inferred Resources of 27 million tonnes at 5.26% copper, at a 3% cut-off. At a lower, 1% cut-off, Kakula contained Indicated Mineral Resources estimated at 192 million tonnes at 3.45% copper plus Inferred Resources of 101 million tonnes at 2.74% copper.
Kakula's addition boosted the combined Kamoa-Kakula Indicated Mineral Resources to 944 million tonnes at 2.83% copper, plus Inferred Resources of 286 million tonnes at 2.31% copper, at a 1% cut-off.
The October 2016 Kakula Mineral Resource was defined by drilling covering a total area of 8.7 square kilometres within the larger 60-square-kilometre Kakula exploration area. The total areal extent of Indicated Resource is 4.6 square kilometres at a 1% cut-off and the areal extent of the Inferred Resource is 3.3 square kilometres at a 1% cut-off. The average dip of the mineralized zone in the Indicated Resource area is 13 degrees, while the average dip is 16 degrees in the Inferred Resource area.
With the addition of Kakula's Mineral Resources, Wood Mackenzie - a prominent, international industry research and consulting group - demonstrated that the Kamoa-Kakula Project is the largest copper discovery in Zambia and the DRC, making it the largest copper discovery ever made on the African continent. Wood Mackenzie's research, independently prepared for Ivanhoe Mines(IVPAF) in October 2016, also showed that Kamoa-Kakula already ranked among the 10 largest copper deposits in the world.
Approximately 46,000 metres now have been drilled at the Kakula Discovery since the current drilling campaign was started in May 2016.
New preliminary economic assessment will analyze expanded development scenarios of up to 16 million tonnes per annum.
In addition to updating the Kakula Mineral Resource estimate, an expanded preliminary economic assessment (PEA) also is underway that will assess the potential of mining the combined Kamoa and Kakula discoveries at extraction rates of between eight and 16 million tonnes per annum (Mtpa) - believed by Ivanhoe Mines'(IVPAF) engineering team to better reflect the size, thickness and grade of the deposits and the associated economics.
The December 2016 PEA estimated that the initial phase of production from Kakula, at a rate of 4 Mtpa, would have a projected average grade of 7.52% copper over the initial five years of operations. Given the potential to significantly expand Kakula's high-grade resources, the project engineering team is targeting a life-of-mine average annual copper production scenario for a mine of up to 8 Mtpa at Kakula, potentially producing in excess of 400,000 tonnes per annum.
Ivanhoe Mines (IVPAF) expects that the extension of the Kakula Discovery by approximately 40% will have a major, positive impact on the project's economics, offering the potential to significantly expand Kakula's mining rate and extend the deposit's mine life.
"The December 2016 PEA assessed the economics of building an initial mine at Kamoa-Kakula with the primary focus of keeping the pre-production capital costs to a maximum of $1 billion," said Mr. Johansson.
"Given that we already have a Tier One, high-grade resource base at Kamoa-Kakula, the engineering team is going to remove availability of capital as a constraint. The next version of the PEA will focus on determining the optimal initial development scenario, as well as the best steady-state mining rate, which balances capital efficiency with effective scale and long-term operating costs to maximize the project's net present value."
In addition, data collection and testwork to support a subsequent pre-feasibility study also is underway to enhance the findings of the Kakula 2016 PEA.
Mineralization at Kakula is substantively thicker and higher grade than elsewhere on the Kamoa mining licence; it also is consistently bottom-loaded and will support the construction of selective, mineralized zone (SMZ) composites at cut-offs up to at least 3% copper. The lateral consistency of mineralization at these higher cut-offs presents significant opportunities for mine planning, with large areas of the resource having chalcocite-rich mineralization with average grades in excess of 6% when using the 3% SMZ.
Chalcocite (copper sulfide, Cu 2 S) is opaque and dark-grey to black, with a metallic lustre (see Figure 9 for an example of Kakula high-grade chalcocite drill core). Due to its very high percentage of contained copper by weight (the percentage of the mineral that is actual metal to be extracted is 80% copper by weight) and its capacity to produce an exceptionally clean, high-grade concentrate, chalcocite is considered to be the most valuable copper mineral.
Based on initial metallurgical test work, the chalcocite-rich nature of the copper mineralization at the Kakula Deposit is expected to yield higher metallurgical recoveries and higher concentrate grades, which in turn are expected to reduce unit transportation costs and therefore improve financial returns.
Bench-scale metallurgical flotation test work at XPS Consulting and Testwork Services laboratories in Falconbridge, Canada, achieved copper recoveries of 87.8% and produced a concentrate with an extremely high grade of 56% copper using the flowsheet developed during the Kamoa pre-feasibility study (PFS). The material tested was a composite of chalcocite-rich Kakula drill core, assaying 8.1% copper.
Earlier metallurgical testwork indicated that the Kamoa concentrates contain arsenic levels of approximately 0.02%, which are extremely low by world standards. Given this critical competitive marketing advantage, Kamoa's concentrates are expected to attract a significant premium from copper-concentrate traders for use in blending with concentrates from other mines. The Kamoa concentrates will help to enable high-arsenic concentrates from mines in Chile and elsewhere to meet the limit of 0.5% arsenic imposed by Chinese smelters to meet China's new environmental restrictions.
A metallurgical test-work program also is underway at Zijin's laboratories to evaluate the potential of bio-leaching material from the Kakula and Kamoa deposits.
Advancing underground development at the Kamoa Deposit now more than half way toward reaching high-grade copper mineralization
Underground mine development at the Kansoko Sud area of the Kamoa Deposit is progressing ahead of plan and within budgeted costs. The twin declines, incorporating service and conveyor tunnels, have advanced more than 550 metres since the first excavation blast was conducted in May 2016. The underground declines now are more than half-way toward the high-grade copper mineralization at the planned Kansoko Mine and are expected to intersect the orebody early in the second quarter this year.
Ivanhoe Mines (IVPAF) expects that the fleet of mining equipment will begin development work at the adjacent Kakula Deposit once the twin declines have intercepted the mineralized zones at the Kansoko Mine development and a bulk sample has been obtained for feasibility-level metallurgical test work.
Excavated rock from the advancing, underground access tunnels is hauled to the surface through the box cut at the Kansoko Mine development on the Kamoa Deposit, adjacent to the Kakula Discovery.
http://media3.marketwire.com/docs/1083518i2.jpg
http://media3.marketwire.com/docs/1083518i3.jpg
Ongoing construction of the twin declines that will provide underground mining access now has progressed more than 550 metres and is past the half-way point between the Kansoko Mine's surface box cut and targeted, high-grade copper mineralization at the Kamoa Deposit.
http://media3.marketwire.com/docs/1083518i4.jpg
Table 1. Recent Kakula drill results completed since the October 2016 Mineral Resource estimate.
http://media3.marketwire.com/docs/1083518t1.pdf
Table 2: Drill-Hole Collar Locations and Orientation
http://media3.marketwire.com/docs/1083518t2.pdf
Current partners in the Kamoa-Kakula Project
The Kamoa-Kakula Project is a very large, stratiform copper deposit with adjacent prospective exploration areas within the Central African Copperbelt, located approximately 25 kilometres west of the town of Kolwezi and about 270 kilometres west of Lubumbashi. The Kamoa Copper Deposit was discovered by Ivanhoe Mines(IVPAF) (then named Ivanhoe Nickel & Platinum) in 2008, followed by the discovery of the Kakula Deposit in early 2016.
In August 2012, the DRC government granted mining licences to Ivanhoe Mines(IVPAF) for the Kamoa-Kakula Project that cover a total of 400 square kilometres. The licences are valid for 30 years and can be renewed at 15-year intervals. Mine development work at the project began in July 2014 with construction of a box cut for the decline ramps for the planned Kansoko Mine that will provide underground access to the high-grade mining areas in Kansoko Sud and Kansoko Centrale.
Following the signing of a partnership agreement with the DRC government last November, Ivanhoe Mines(IVPAF) and Zijin Mining each hold an indirect 39.6% interest in the Kamoa-Kakula Project, Crystal River Global Limited holds an indirect 0.8% interest and the DRC government holds a direct 20% interest.
In addition, Ivanhoe Mines(IVPAF), Zijin Mining and Crystal River recently amended their Shareholder, Governance and Option Agreement that originally took effect December 8, 2015. The agreement governing their relationship in the Kamoa-Kakula Project codifies the operation of the project committee and the management of the DRC subsidiary, Kamoa Copper SA, so that the agreement is consistent with existing, on-the-ground practice. The amendments also clarify that if Ivanhoe Mines(IVPAF) arranges project financing for 65% of the capital required to develop the first phase of the Kamoa-Kakula Project, Ivanhoe Mines(IVPAF) then will be entitled to acquire the indirect 0.8% interest in the Kamoa-Kakula Project held by Crystal River for a price equal to the then current market value of that interest as determined by an independent expert valuator. The acquisition of Crystal River's indirect 0.8% interest in the Kamoa-Kakula Project would give Ivanhoe Mines(IVPAF) majority control of Kamoa Holding Limited, the entity that presently owns 80% of the Kamoa-Kakula Project. Zijin Mining already had committed to use its best efforts to arrange or procure project financing for 65% of the capital required to develop the first phase of the Kamoa-Kakula Project, as set out in a feasibility study, without any recourse, and on terms acceptable to Ivanhoe Mines(IVPAF). If Ivanhoe Mines(IVPAF) and Zijin Mining cannot agree on project financing, the matter will be referred to binding arbitration in Hong Kong.
At the request of Ivanhoe Mines(IVPAF) and Zijin Mining, and subject to the satisfaction of the applicable conditions, the DRC will provide its assistance in obtaining the advantages contemplated by the DRC's special law - No. 14/005, enacted to facilitate Sino-Congolese cooperation - relating to the tax, customs, parafiscal tax, non-tax revenues and currency exchange regime applicable to cooperation projects.
Qualified Person and Quality Control and Assurance
The scientific and technical information in this release has been reviewed and approved by Stephen Torr, P.Geo., Ivanhoe Mines'(IVPAF) Vice President, Project Geology and Evaluation, and a Qualified Person under the terms of National Instrument 43-101. Mr. Torr has verified the technical data disclosed in this news release.
Ivanhoe Mines (IVPAF) maintains a comprehensive chain of custody and QA-QC program on assays from its Kamoa Project. Half-sawn core is processed at Kamoa's on-site preparation laboratory and prepared samples then are shipped by secure courier to Bureau Veritas Minerals (BVM) Laboratories in Australia, an ISO17025-accredited facility. Copper assays are determined at BVM by mixed-acid digestion with ICP finish. Industry-standard certified reference materials and blanks are inserted into the sample stream prior to dispatch to BVM. For detailed information about assay methods and data verification measures used to support the scientific and technical information, please refer to the current technical report on the Kamoa Copper Project on the SEDAR profile of Ivanhoe Mines(IVPAF) at www.sedar.com.
About Ivanhoe Mines(IVPAF)
Ivanhoe Mines (IVPAF) is advancing its three principal projects in Sub-Saharan Africa: Mine development at the Platreef platinum-palladium-gold-nickel-copper discovery on the Northern Limb of South Africa's Bushveld Complex; mine development and exploration at the Kamoa-Kakula copper project on the Central African Copperbelt in the DRC; and upgrading of the historic, high-grade Kipushi zinc-copper-lead-germanium mine, also on the DRC's Copperbelt. For details, visit www.ivanhoemines.com.
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws, including without limitation: (1) statements regarding the massive potential for resource expansion; (2) statements regarding the expectation to have an updated independent Mineral Resource estimate prepared for Kakula in early Q2 2017 and within 90 days of this press release; (3) statements regarding the potential for continuity of Kakula-style mineralization along strike to the southeast; (4)
statements regarding the aim of initial drilling to infill an area of 2.6 square kilometers; (5) statements regarding the high-grade Kakula zone remains open along a southeasterly and northwesterly strike; and (6) statements regarding the expectation that Kamoa's concentrates will attract a significant premium from copper-concentrate traders for use in blending with concentrates from other mines. Such statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the company's current expectations regarding future events, performance and results and speak only as of the date of this release.
All such forward-looking information and statements are based on certain assumptions and analyses made by Ivanhoe Mines'(IVPAF) management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believe are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure, or delays in the development of infrastructure, and the failure of exploration programs or other studies to deliver anticipated results or results that would justify and support continued studies, development or operations. Other important factors that could cause actual results to differ from these forward-looking statements also include those described under the heading "Risk Factors" in the company's most recently filed MD&A as well as in the most recent Annual Information Form filed by Ivanhoe Mines(IVPAF). Readers are cautioned not to place undue reliance on forward-looking information or statements. The factors and assumptions used to develop the forward-looking information and statements, and the risks that could cause the actual results to differ materially are set forth in the "Risk Factors" section and elsewhere in the company's most recent Management's Discussion and Analysis report and Annual Information Form, available at www.sedar.com.
This news release also contains references to estimates of Mineral Resources. The estimation of Mineral Resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral Resource estimates may have to be re-estimated based on, among other things: (i) fluctuations in copper, platinum, palladium, gold, rhodium, nickel or other mineral prices; (ii) results of drilling; (iii) results of metallurgical testing and other studies; (iv) changes to proposed mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licences.
Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.
Investors
Bill Trenaman
+1.604.688.6630
Media
North America
Bob Williamson
+1.604.512.4856
Media
South Africa
Jeremy Michaels
+27.82.939.4812
www.ivanhoemines.com
Source: Ivanhoe Mines Ltd.(IVPAF)
Nice breakout for palladium -
http://www.finviz.com/futures.ashx
Place curser over palladium box for 3 month chart. Click, while curser over palladium box, for 1 year chart.
We could se an improved 8- to 10-million-tonne-per-annum study for Kakula by early February -
“We’ve already discovered as much copper in Measured and Indicated Resources as we found with the original Ivanhoe Mines at Oyu Tolgoi, in Mongolia’s South Gobi — but this time at much higher grades. Significantly, both the Kamoa and Kakula discoveries are open for future expansions. We remain focused on expediting development of Kamoa and Kakula. The engineering team has been assigned to produce an improved 8- to 10-million-tonne-per-annum study for Kakula, hopefully in time for the Mining Indaba conference in Cape Town in early February next year.”
https://www.ivanhoemines.com/news/news-releases/ivanhoe-mines-announces-results-of-a-positive-independent-preliminary-economic-assessment-pea-of-initial-options-for-the-start-up-of-world-scale-copper-mining-on-the-kakula-and-kamoa-deposits-in-the-d-r-congo
Share price moving up nicely. Maybe, some more of the big money has been listening to this awesome conference call -
A recording of the December 15th Kakula PEA
conference call is available until January 18, 2017.
Dial-in numbers: +1-905-694-9451 or 1-800-408-3053
Passcode 6300478
My favorite statement from the call is by Robert Friedland -
"All shareholders will make a ridiculous amount of money"
All, of course, would include the IPO buyers at around $5.00 a share USD.
I wish I knew Canadian Mining Hall Of Famer RF's definition of ridiculous.
To me, a five bagger is huge, a 10 bagger is sensational, and a 20 bagger and above is ridiculous.
I've been wondering what KTOV would do with the anticipated earnings from KIT-302. IMO, they have plenty of money for a phase 1 on this new drug and earnings should be coming in from KIT-302 in time to pay for the other trials.
From sticky -
KTOV a very professional report (link inside)-"patient population for KIT-302 of approximately 12 million patients in the US". "Figure 6 shows our estimates for US sales of KIT-302 based on the assumptions above. Our scenario includes a modest launch and peak penetration of 2%. This yields estimated peak sales of $513 million in 2022"
http://www.baystreet.ca/articles/research_reports/lifesci/Kitov092116.pdf
I don't think too many KTOV investors were fooled by the Pfizer trial. From SA -
http://seekingalpha.com/article/4032938-kitov-pharmaceuticals-precision-study-shelf-registration-create-buying-opportunity
From an article at the American Heart Association (my emphasis):
"The trial was so poorly designed that the conclusions are unsupportable," said Garret FitzGerald, M.D., director of the Institute for Translational Medicine and Therapeutics at the University of Pennsylvania, who wrote about the study in an editorial published in Circulation.
"The trial is called PRECISION, and that's the last thing it delivers," he said. "It provides us no useful information to influence practice."
[…]
"Doctors may have been nervous about giving people with high cardiovascular risk a COX-2 inhibitor, so they never enrolled them in the trial," said Elliott Antman, M.D., a cardiologist at Brigham and Women's Hospital in Boston and associate dean for clinical/translational research at Harvard Medical School, who was not involved in the study.
And from an article at the Cardiology Advisor (my emphasis):
During the trial, 68.8% of patients discontinued taking the study agent, and 27.4% of patients were lost to follow-up. "The principal limitation was the low retention and nonadherence rates," Nissen said. "This is more typical in pain trials than in CV outcome trials."
A second limitation he noted was that, due to regulatory restrictions on the doses of celecoxib, "we used doses considered to be moderate-100 mg twice a day, which could be increased to 200 mg twice a day for those with RA. But patients with RA were only 10% of the total number of participants." By contrast, those taking naproxen or ibuprofen were allowed to escalate doses without restriction.
In an interview with Cardiology Advisor, Elliot Antman, MD, professor of medicine, Cardiovascular Division, Brigham and Women's Hospital and associate dean for Clinical and Translational Research at Harvard Medical School in Boston concurred that these were important limitations.
"Poor adherence and low retention challenge the claim of noninferiority since the proportion of individuals who discontinued the drug was significantly higher in celecoxib, as compared to ibuprofen or naproxen, suggesting that the dose of celecoxib was too low to achieve pain reduction," Dr Antman said. By contrast, "those who discontinued ibuprofen or naproxen did so because of adverse reactions, and were receiving comparatively higher doses."
He expressed additional concerns: "Previous data showed that high doses of celecoxib were associated with risk of [CV] events, and this study utilized relatively low doses."
"Moreover, since a relatively small percentage of participants had known heart disease, the population can be considered low-risk. The low dose of celecoxib administered to a low-risk population calls into question the statement of noninferiority," Dr Antman said.
My take is that the low dosage of celecoxib administered during the study will render the chances of the FDA removing the black box label on celecoxib - based on this study alone - to essentially zero (For example, the PRECISION study used a 100 mg dosage of celecoxib while all three of KIT-302's titrations use 200 mg of celecoxib). Thus KTOV's advantage for KIT-302 still stands. Moreover, the target population for KIT-302 is patients known to be suffering hypertension. For these patients, not only does the issue of liability suggest that physicians will prescribe the combination drug which will have a huge labeling advantage, but KIT-302's synergistic effects on blood pressure will also cause doctors to choose KIT-302 over prescribing separate arthritis pain medications and anti-hypertensive drugs.
Deep Dive on the Zinc Markets with Doug Ramshaw
This interview has a lot of good information in it. Although, Doug is not up to date on Ivanhoe's Kipushi zinc mine which could be up and running within a year according to Robert Friedland.
https://www.ceo.ca/@newton/deep-dive-on-the-zinc-markets-with-doug-ramshaw-vtt
BMO Reveals Its 33 Top Stock Picks for 2017 ($5.75 CAD = approximately $4.30 USD)
According to an article in the Globe and Mail...
BMO Reveals Its 33 Top Stock Picks for 2017
Growth Stocks
Gildan Activewear Inc. (GIL-T)
Methanex Corp. (MX-T)
CF Industries Holdings Inc. (CF-N)
Chevron Corp. (CVX-N)
Whitecap Resources Inc. (WCP-T)
InterRent REIT (IIP.UN-T)
Milestone Apartments REIT (MST.UN-T)
Tricon Capital Group Inc. (TCN-T)
Kinaxis Inc. (KXS-T)
ShawCor Ltd. (SCL-T)
SEMAFO Inc. (SMF-T)
GARP Stocks
Brookfield Asset Management (BAM-N)
Bank of Nova Scotia (BNS-T)
Cineplex Inc. (CGX-T)
Canadian Natural Resources Ltd. (CNQ-T)
Seven Generations Energy Ltd. (VII-T)
Rio Tinto (RIO-LSE)
Union Pacific Corp. (UNP-N)
Boralex Inc. (BLX-T)
Faroe Petroleum (FPM-LSE)
Value Stocks
Canadian Tire Corp. Ltd. (CTC.A-T)
West Fraser Timber Co. Ltd. (WFT-T)
Detour Gold Corp. (DGC-T)
Newmont Mining Corp. (NEM-N)
Royal Gold Inc. (RGLD-Q)
Anglo American PLC (AAL-LSE)
Birchcliff Energy Ltd. (BIR-T)
Anglo Pacific Group PLC (APF-LSE)
Ophir Energy PLC (OPHR-LSE)
Catalyst-Driven Stocks
ECN Capital Corp. (ECN-T)
Ivanhoe Mines Ltd. (IVN-T)
Osisko Mining Inc. (OSK-T)
Precision Drilling Corp. (PD-T)
West Fraser Timber Co. Ltd. (WFT-T)
(I counted 34. I guess I'm havin' trouble with my addin'.)
The comment on IVN is as follows:
Analyst Andrew Mikitchook believes the share price of this stock may more than double over the next year. He has a target price of $5.75 on Ivanhoe Mines Ltd. (IVN-T), and highlights a catalyst, “Kakula-Kamoa high-grade copper project in particular is already among the largest undeveloped projects worldwide and is continuing to expand in scale with the next PEA (preliminary economic assessment) due in Q1/17 (first quarter of 2017) guiding for a doubling of throughput.”
Read more at http://www.stockhouse.com/companies/bullboard/t.ivn/ivanhoe-mines-limited?postid=25691665#JKZgh6yq0VsLpQMP.99
Apparently, Kazakhstan, the world's largest producer is cutting production of uranium by 10%.
Kazaks cutting U production by 10% precious. That supports your investing take on riskier stocks.
Read more at http://www.stockhouse.com/companies/bullboard?symbol=t.nxe&postid=25687303#IRwJvBkwe9mG4Wse.99
NexGen's high-grade drill results signal a bright 2017
Gwen Preston, editor of Resource Maven, concurs, writing on Dec. 14, "If uranium continues to strengthen I would expect NXE shares to offer strong leverage, given that Arrow is the best uranium discovery in the world. The price will also rise as we approach that resource update, which could well grow the already-impressive 202-million lb. resource by 50%."
http://www.mining.com/web/nexgens-high-grade-drill-results-signal-a-bright-2017/?utm_source=digest-en-mining-170106&utm_medium=email&utm_campaign=digest
Does NUGT qualify?
TIA
I don't see NVIV share holders voting for this buy out proposal. However, if I were a NVIV share holder I would be concerned about the patent rights -
· Terrible Stock Performance, Terrible CEO, and Terrible Board of Directors 2013-2017
· Without conducting an exit interview of NVIV Founder, NVIV primary NeuroScaffold inventor and patent holder Frank Reynolds, NVIV shareholders have struggled to maintain the $520,000,000 in value created by Frank Reynolds, and today at $136mm they are dreadfully overvalued.
· It took years for NVIV to notify Frank Reynolds of their patent assignment issue, and Frank Reynolds will not provide FREE patents to NVIV. That request was ridiculous.
· There’s never been a bridge for NVIV shareholders to own the commercial rights to the original Neuroscaffold and Frank Reynolds and PXRB can provide that to NVIV shareholders.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): January 3, 2017
PixarBio Corporation
(Name of Small Business Issuer in its Charter)
Delaware
47-1945113
(State or Jurisdiction of Incorporation or Organization)
(I.R.S. Employer Identification No.)
200 Boston Avenue, Suite 1875
Medford, MA 02155
(Address of principal executive offices)
(617) 803-8838
(Telephone Number of Principal Executive Offices)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 7.01 Regulation FD Disclosure.
PixarBio Corporation (the “Company”) issued a press release, dated January 3, 2017, in which the Company announced its intention to acquire InVivo Therapeutics, Inc. (InVivo), which like the Company, is a pharma company which was found by Frank Reynolds, the Company’s Chief Executive Officer. The proposed acqusition, which has been approved by the Company’s Board of Directors, is expected to close in the Q1 of 2017 on the condition that InVivo’s current Board serves no role in the surviving Company, which will be renamed Reynolds Therapeutics Corporation.
ITEM 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.
Description
99.1
Press Release dated January 3, 2017 – Its Time to Make Pharma GREAT Again, By Combining Two Frank Reynolds’ Founded Pharmas,, PixarBio Corp. (OTCQX: PXRB) and InVivo Therapeutics (NASDAQ-NVIV). The $77,000,000 Stock Offer Will Create a New Pharma Called Reynolds Therapeutics Corporation to Solve the Opiate Crisis and to Regenerate Chronic Spinal Cord in Humans and Finally Cure Paralysis
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PixarBio Corporation
(the Company)
Dated: January 3, 2017
By:
/s/ Francis M. Reynolds
Name: Francis M. Reynolds
Title: Chief Executive Officer
3
--------------------------------------------------------------------------------
EXHIBIT 99.1
CONTACT:
Ken Stromsland
CIO and VP, Investor & Public Relations
(617) 913-8884
info@pixarbio.com
It’s Time to Make US Pharma GREAT Again, By Combining Two Frank Reynolds’ Founded Pharmas, PixarBio Corp (OTCQX:PXRB) and InVivo Therapeutics (NASDAQ:NVIV). The $77,000,000 Stock Offer Will Create a New Pharma Called Reynolds Therapeutics Corporation to Solve the Opiate Crisis and To Regenerate Chronic Spinal Cord In Humans and Finally Cure Paralysis
Cambridge, Massachusetts (January 3, 2017): PixarBio Corporation, (OTCQX: PXRB) today announced a take-over bid to acquire InVivo Therapeutics the company PixarBio CEO Frank Reynolds founded in 2005. The deal is expected to close in Q1 2017.
PixarBio Board of Directors has approved the offer, Board member Derek Bridges explained “As a Board, we’re focused on responding to the opiate/opioid crisis with the development of NeuroRelease, and to solving Neurosciences biggest challenges in spinal cord injury, epilepsy, and Parkinson’s disease. Our top priority is to replace Morphine, Percocet, Vicodin and other addictive opiates in the healthcare system. The threshold for US FDA approval for non-opiate post-surgical pain treatments is set low by Exparel, and will be easy to replace once NeuroRelease is FDA approved, which we expect in early 2019. In regards to neuro-trauma, we see great synergies for PXRB and NVIV shareholders combining both NVIV and PXRB patent portfolios. We’ll rename PixarBio Corporation, Reynolds Therapeutics Corporation. Reynolds Therapeutics’ R&D pipeline will be focused on developing breakthrough neurological treatments that will reduce costs all around the healthcare system. Reynolds Therapeutics will be a new type of Life Science Pharma focused on acute/chronic pain, acute/chronic spinal cord injury, adaptive technologies, epilepsy, and Parkinson’s disease. Our portfolio will be FDA classified as either new drugs, new biologics, new devices and/or combo drug/device/biologics so the future is exciting for patients and we’ll create a rare opportunity for investors interested in the future of non-addictive pain treatments and other challenging neurological conditions.”
PXRB Value Proposition for NVIV Shareholder: Clear and Obvious
· No more down rounds by NVIV CEO Mark Perrin
· NVIV closed on 12/31/2016 at $4.20/share
· NVIV began 2016 at $7.20/share
· NVIV down ~46% in 2016, a continued spiral downward! PXRB can Stop it
· NVIV stock is back near its 2010 IPO share price of $4.00/share (split-adjusted)
· NVIV has hit its 2010 IPO price of $4.00/share, TWICE since Frank Reynolds resigned, once in 2013 and here we are again near $4.00/share in 2017
· It’s time for a change at NVIV, Stop The NVIV downward spiral
· Valuable sustainable stock in a combined PXRB/NVIV called Reynolds Therapeutics Corporation
1
On October 30, 2016 PixarBio (PXRB) closed a private offering at $2.00/sh. and closed on 12/31/2016 at $4.59/sh. up 129% in 2016 with a market cap over $415,000,000
As one of Frank Reynolds’ fellow Wharton Alumni, President-Elect Donald J. Trump might say “It’s time to Make US Pharma GREAT AGAIN!!”
“It’s been over 3.5 years since I resigned as CEO of InVivo Therapeutics Corporation, to found PixarBio Corporation (PXRB) in August 2013. It’s clear that 2013-2017 have not been great years for the NVIV CEO & the NVIV Board of Directors. The round of recent MAJOR exits makes it a perfect time to keep the required exits for success going. It’s time to focus on shareholder value, and REAL change at NVIV. I founded InVivo Therapeutics over 11 years ago but the last 3.5 years have been a black hole for investor’s money, and the NVIV team has had a real dead spot in innovation failing in the area of shareholder value creation, so it’s time for real Change”, said PixarBio CEO Frank Reynolds.
NVIV Recent Exits in Q4 2016: Read the “Tea Leaves” of Change, Hopefully Not Finished…
· We’ve watched the NVIV legal team 2011-2016, Greenberg Traurig, replaced with Wilmer Hale…DONE
· Since 2013, we’ve observed two NVIV CFOs replaced…we should know their exit deals…DONE
· We’ve observed John McCarthy the Chairman of the Board of NVIV replaced...DONE
· We’ve observed NVIV CEOs, guide the stock back to nears its 2010 IPO price $4.00/share twice since 2013…He Should Be DONE
· We see Rich Roberts and Ken DiPietro still on the Board...value destroyers, whose own histories in our PXRB Board’s opinion make them unfit for ANY public board so they must resign from the NVIV Board of Directors.
Will we see Dr Rich Roberts and Ken DiPietro resign next? NVIV shareholders must be dreaming as they read this thinking, a fresh start without Roberts and DiPietro...GRAND SLAM. LOVE THE NEW TEAM.
“We all know that NVIV current CEO Mark Perin’s took his company before NVIV as CEO into bankruptcy, and Perin has had 3 years (maybe two years too long) that’s enough time to succeed with a Frank Reynolds’ Neuroscaffold technology so it’s time for change. The CEO of NVIV needs to be replaced to have a shot at commercializing NVIVs true value, the NeuroScaffold for treating acute spinal cord injury invented by Frank Reynolds.”, said PixarBio CEO Frank Reynolds
NVIV MAJOR ISSUES
· Terrible Stock Performance, Terrible CEO, and Terrible Board of Directors 2013-2017
· Without conducting an exit interview of NVIV Founder, NVIV primary NeuroScaffold inventor and patent holder Frank Reynolds, NVIV shareholders have struggled to maintain the $520,000,000 in value created by Frank Reynolds, and today at $136mm they are dreadfully overvalued.
· It took years for NVIV to notify Frank Reynolds of their patent assignment issue, and Frank Reynolds will not provide FREE patents to NVIV. That request was ridiculous.
· There’s never been a bridge for NVIV shareholders to own the commercial rights to the original Neuroscaffold and Frank Reynolds and PXRB can provide that to NVIV shareholders.
2
· Merging PXRB and NVIV is the only pathway for NVIV shareholders to have commercial rights to all of Frank Reynolds Neuroscaffold patents, Pain, Epilepsy, and Parkinson’s know-how which is a HUGE win for NVIV shareholders
· By combining the PXRB and NVIV patent portfolios under one roof, the world of Neuroscience will be changed forever with a steady stream of R&D portfolio growth 2017-2039 to replace addictive opiates treating post-surgical pain, with a wide range of acute and chronic pain treatments, to develop acute and chronic spinal cord injury treatments, and to develop epilepsy and Parkinson’s disease treatments.
NVIV Under Frank Reynolds’ Inventions and Leadership 2005 -2013
· NVIV Market Cap went from $00.00 in November 2005, to $520,000,000 in July 2013
· NVIV shares hit a high of $24.80/share (split-adjusted)
· NVIV had years of cash and equivalents when Frank Reynolds resigned
· Frank Reynolds conceived and patented The Neuroscaffold with his personal checks, lawyers and contracts
· Frank Reynolds invented a Thick R&D portfolio with 7 Products in the pipeline 2005 – 2013.
· Today Non-opiate pain replacements are the hottest space in medicine but NVIV missed it.
NVIV After Frank Reynolds August 2013-2017
· Stock Plummeted within 60 days of Frank’s resignation, by Sept-Oct 2013, the Board and management of NVIV had one product in-process at the FDA, and the stock plummeted to near $4.00/sh. (split-adjusted), which was Frank Reynolds’ NVIV 2010 IPO share price
· In August 2013, Frank Reynolds had two of his inventions in-process for US FDA approval, but the NVIV Board of independent Board members didn’t know the R&D pipeline and killed off a thick R&D portfolio including novel, non-opiate pain treatments invented by Frank Reynolds.
· NVIV Missed the Non-opiate pain market
· On Dec 31, 2016 at $4.20 NVIV is back to near its 2010 IPO price of about $4.00 (split-adjusted) for the second time since 2010 after hitting $4.00 in 2013.
· The 2013 NVIV Board of Directors is being replaced, but not fast enough
Is NVIV really worth $136,000,000?
The PixarBio offering price for NVIV is discounted to $77,000,000, or a take-under price because NVIV has failed to protect the Neuroscaffold’s value, and in 2017, it is now back to near Frank Reynolds’ 2010 IPO price per share of $4.00 (split-adjusted).
NVIV is near the 2010 $4.00 IPO share price, for the second time in 3.5 years since Frank Reynolds resigned.
“It’s time for me to take back the technology and re-value what I invented, and bring my neurological patent portfolio to market after merging PXRB with NVIV”, said PixarBio CEO, CFO, and Chief Science Officer Frank Reynolds. WE GOT THIS!!
3
Major Benefits to NVIV Shareholders
· NVIV shareholders get a great management team of R&D leaders from PXRB.
· A PXRB executive team with a history of growing shareholder value
· We believe the shareholder value will increase after NVIV is acquired for $77,000,000
· Increases probability of a Frank Reynolds Neuroscaffold patent deal to commercialize NVIV products creating the first possibility of a revenue stream for NVIV
· PXRB can solve NVIV’s 2017 cleanroom constraints
· Frank Reynolds’ original NVIV NeuroScaffold invention team currently works for PixarBio, so it simple plug and play on the SCI R&D treatments for chronic SCI patients. WE GOT THIS!!
· Brings true concept of invention back to NVIV shareholders and hope to chronic SCI patients
· What has NVIV invented since August 2013?
· PXRB’s cGMP manufacturing facility coming on-line this summer 2017 to solve the NVIV crisis
· Under one roof the new company will be called Reynolds Therapeutics and NVIV shareholders can benefit from Frank Reynolds Key PXRB project, to regenerate human spinal cord for a chronic spinal cord injury patient
A New Reynolds Therapeutics Will Deliver Financial Results for NVIV and PXRB Shareholders
· Frank Reynolds was 2013 Boston Business Journal CFO of the year Finalist
· Combined companies have cash through 2018, with plenty of time to avoid another NVIV down-round.
· Only chance for NVIV shareholders to gain commercialization rights to a complete suite of NeuroScaffold patents combining PXRB and NVIV Neuroscaffold patents.
· PixarBio’s Inventors of NeuroRelease a non-addictive, non-opiate morphine replacement has a thick R&D pipeline for the most desperate space in medicine, post-surgical pain, acute and chronic pain, that can remove addictive opiates from the hospital setting.
· PixarBio is the leader to replace opiates, and 92,000,000 surgeries per year in the USA we have the largest potential market in clinical medicine…acute and chronic pain
· PixarBio pipeline includes novel neuroscaffolds for acute and chronic spinal cord injury, drug delivery systems for epilepsy and Parkinson’s.
· Expanded R&D portfolio Licensing Opportunities for all NVIV and PXRB Shareholders
The offer is contingent that none of the existing directors continuing to serve on the surviving entity.
Justification for NVIV Take-under at $77,000,000
· NVIV lacks Frank Reynolds Patent rights to commercialize the NeuroScaffold, the probability of a deal is zero under current Board of Directors and CEO
· Frank Reynolds has rejected NVIV request to assign rights to Neuroscaffold patent
· NVIV never compensated Frank Reynolds with shares for his inventions, and NVIV expects the use of the Neuroscaffold patents for free, but there will be a cost, and that cost must be factored into the current NVIV valuation, setting the new valuation around $77,000,000
· Since Reynolds resigned in 2013, NVIV CEOs twice have managed the stock down to Frank Reynolds’ 2010 IPO price, CEO Mark Perrin has got to resign
4
· NVIV needs a CFO: Reynolds was finalist for CFO of the Year 2013. The temporary CFO brought in Q4 2016, has no EXPERIENCE as a public CFO, she is an internal hire with no leverage against the Board or leverage on Wall Street, so current NVIV valuation is way too high
· NVIV is back to its IPO again, A CFO MUST HAVE some Wall street exposure, this is NO TIME for training wheels
· PixarBio Founder Frank Reynolds not only won “2013 Boston Business Journal Finalist for CFO of the Year” but Frank Reynolds won the 2013 and 2016 Boston Business Journal Best Company to Work”
· During his career, Frank Reynolds is the ONLY CEO/CFO in Early Stage Pharma to have never done a down-round.
· Frank Reynolds education at Univ Penn: Wharton School, Harvard Business School, MIT-School, St Joe’s Haub School of Business, Chestnut Hill College, and Temple Univ: Fox School of Business have provided him decades of more Wall Street experience than the Jan 2017 NVIV temporary CFO
· Frank Reynolds means a new life for NVIV shareholders
Today NVIV stock is back to its 2010 IPO Share price of about $4.00 (split-adjusted), for the second time since 2010, and both occurred after Reynolds left in 2013 and 2016.
“Our offering price of $77,000,000 is discounted, because NVIV has failed to develop my patents, science and know-how. NVIV appears to have lost the historically significant SCI primate research data, and they are now back to my 2010 IPO share price, for the second time in 3.5 years but its 2017. It is time I take back the technology I invented to bring my neurological R&D portfolio to market by acquiring NVIV and saving the NVIV shareholder from more years of down-rounds.”, said PixarBio CEO Frank Reynolds
Reynolds Therapeutics Value and Valuation: A typical yet classic acquisition
NVIV Needs New Management
NVIV was founded by Frank Reynolds, and PixarBio was also Founded by Frank Reynolds so it’s time to get back to basics, and make InVivo Therapeutics patent portfolio great again by selling to NVIV to PixarBio Corp and to create a new Reynolds Therapeutics.
The Reynolds Therapeutics valuation is based on real synergies. PixarBio market opportunity is HUGE with a market cap over $415,000,000. Tackling the morphine and opiate replacement market with non-opiate, and non-addictive new drugs to replace most opiates/opioids with expected US FDA approval in early 2019 is in the PixarBio wheelhouse for success. PXRB non-opiate platform provides a huge present and future valuation. PXRB is currently undervalued.
A purchase price of $77,000,000 for NVIV brings great value to PXRB shareholders. We can see a patent deal with Reynolds putting value back into the NVIV business unit, then complementing the PXRB Neuroscaffold platform.
5
Return on Investment for NVIV Shareholders…The Decision is A NO-BRAINER
Reynolds Therapeutics is a story based on a classic case of a GREAT PixarBio mgmt. team buying NVIVs bad mgmt. team and Reynolds Therapeutics applying Great R&D mgmt. principles to regain the Neuroscaffold shareholder value. We will turn the NVIV SCI innovation engine BACK-ON to complement PixarBio’s SCI Neuro-trauma Innovative R&D Portfolio, and PixarBio Mgmt. will monetize the NVIV value.
· PixarBio’s Post-surgical pain treatment market is HUGE at 92,000,000 yearly surgeries in USA, representing revenue opportunity that exceeds $30B per year
· In addition to the surgical market, PixarBio acute/chronic pain treatment such as cancer, sports injuries, trauma, degenerative disease, diabetic neuropathy and many others and those acute/chronic pain markets exceed $40B per year
· NVIV has a potential market of about 12,000 people paralyzed per year in the USA, but has targeted through FDA application just a tiny subset of the 12,000 injuries, possibly as low as 50 SCI injuries per year, and PXRB can solve that problem expanding the SCI market opportunity near 4,000 treatments per year
· Reynolds Therapeutics will help balance the risk for NVIV shareholders for the small market risk of acute spinal cord injury with PXRB’s Huge Post-surgical pain mkt. potential
· PixarBio’s Neuro-trauma R&D portfolio helps mitigate NVIV investor risks
· In Q4 2016, Frank Reynolds took PXRB Public at $2.00 per share closing 12/31/2016 at $4.59 per share for a 129% ROI in 2016. NVIV was down ~46%
· PixarBio, The inventor of NeuroRelease, a potential morphine replacement that’s non-addictive and non-opiate is undervalued since October 31, 2016, when it became publicly traded.
· Combining PXRB with NVIV assets brings Frank Reynolds patents together, and the synergies will be great for patients and investors.
· Obtaining a Neuroscaffold patent agreement with Reynolds, provides NVIV assets a much higher valuation than the $77,000,000 we see as the NVIV value today.
“Most importantly, the neurological R&D space desperately needs a new generation of leaders to create, capture and monetize inventions in pharma. If you look at recent CEO moves like Biogen’s and others CEO’s in neuroscience are failing. Neuroscience Pharma needs new industry leadership and PixarBio is perfectly prepared to lead, as investors and patients become more desperate for returns from investments. PixarBio’s 2017 Deal making is NOT done. The industry needs consolidation, so let’s get busy and make US Pharma great again”, said Frank Reynolds PixarBio CEO and Founder
NVIV Background
Founded by Frank Reynolds on November 28, 2005 and added MIT’s Robert S Langer as Advisor to CEO and Co-Founder in Q4 2006.
PXRB Background
Co-Founded by Frank Reynolds, Katrin Holzhaus and MIT’s Robert S. Langer on August 29, 2013
6
About PixarBio Corporation
PixarBio is a public company traded on the OTC markets under the stock symbol PXRB.PixarBio is a specialty pharmaceutical/biotechnology company focused on pre-clinical and clinical commercial development of novel neurological drug delivery systems for post-operative pain. PixarBio researches and develops targeted delivery systems for drugs, devices, or biologics to treat pain, epilepsy, Parkinson’s disease, and spinal cord injury. Our lead product platform, NeuroRelease™, has achieved sustained therapeutic release of non-opiate drugs for post-operative, acute and chronic pain in pre-clinical models. For more information, visit www.pixarbio.com.
Safe Harbor Statement
This announcement includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of PixarBio’s management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.
Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of Biotech and medical device industry regulation and health care legislation in the United States and internationally; global trends on cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; PixarBio’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of PixarBio’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.
PixarBio Corp undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be obtained through PixarBio’s corporate headquarters at 200 Boston Ave, Suite 1875 in Medford, MA 02155.
It’s Time to Make US Pharma GREAT Again, By Combining Two Frank Reynolds’ Founded Pharmas, PixarBio Corp (OTCQX:PXRB) and InVivo Therapeutics (NASDAQ:NVIV)
Tue January 3, 2017 8:00 AM|Business Wire|About: PXRB
The $77,000,000 Stock Offer Will Create a New Pharma Called Reynolds Therapeutics Corporation to Solve the Opiate Crisis and To Regenerate Chronic Spinal Cord In Humans and Finally Cure Paralysis
http://seekingalpha.com/pr/16702951-s-time-make-us-pharma-great-combining-two-frank-reynolds-founded-pharmas-pixarbio-corp-otcqx
http://www.africanews.com/2017/01/01/dr-congo-inclusive-political-agreement-finally-adopted-and-signed-in-kinshasa/
This could be good news for the Congolese people.
Happy New Year to you too!
Bullish on Ivanhoe Mines
http://seekingalpha.com/article/4033227-top-5-mining-stocks-watch-2017#alt1
Political Risk?
Below are statements by Robert Friedland from this must listen to conference call -
A recording of the December 15th Kakula PEA
conference call is available until January 18, 2017.
Dial-in numbers: +1-905-694-9451 or 1-800-408-3053
Passcode 6300478
Any conception of political risk is quite misplaced.
This deposit can double Congolese copper production. They need this mine.
Our Chinese friends at Zijin know the value of this deposit to China and the Chinese people.
A deposit like this is in the national security interest of all the major powers.
Sudden availability to unlimited amounts of capital from sources in Asia, Europe, the middle east and others.
We are in a competitive process for cheap capital.
Everybody and his brother wants to put a wedding ring on us.
There have been a bunch of articles recently, written by western media, condemning Kabila for violating the DRC constitution by staying in office. Now we get to read the rest of the story -
http://www.herald.co.zw/drc-envoy-raps-westerners-media/
IVN.TO's liquidity is available to IVPAF's buyers and sellers. I use Fidelity (I imagine that most brokers are the same) and they route my orders through the Toronto Stock Exchange. Almost all of my buys have been listed on the IVN.TO time and sales as well as IVPAF's time and sales. The rare exemptions to this, I think, are due to IVPAF sellers having enough shares for sale to fill my order.
The usual small number of shares on IVPAF's bid/ask is meaningless. For instance, if I want to buy 20,000 shares right away, I put a limit order in at IVPAF's ask price. It will fill right away if there are that many shares for sale on IVN.TO's ask. Which there usually is. My limit at the ask orders usually filled between one and two cents less than my limit price.
If you can predict where the USD (U.S.$) is headed against the CAD (Canadian$), then it may make sense to buy IVN.TO with CAD. As owners of IVPAF in USD we want the CAD to appreciate against the USD. Parity between the currencies would give us big gains. Parity right now would price IVPAF at IVN.TO's price of $2.44. I'm not a currency expert, but I do know that the CAD is highly leveraged to commodity prices, especially oil. Higher commodity prices, higher CAD. $100 oil and higher metal prices could result in parity. That's what I'm hoping for a few years out.
I had inquired about buying Canadian stocks on Canadian exchanges back awhile ago. I remember that they had to be bought with CAD, which meant that my dollars had to be exchanged for a fee when buying and selling. I remember it didn't seem worth it at the time.
I do know a couple of guys that have opened Canadian brokerage accounts. They deposited USD, paid the exchange rate once and leave the money there to buy and sell Canadian stocks. However, they did this mainly to trade Canadian stocks that don't trade in the states.
IVPAF is the American listing, but, the price of IVPAF is determined by what happens with IVN.TO (Ivanhoe's main listing).
Yesterday, IVPAF closed at 1.91. This morning it is valued at 1.845 before trading opens. IVN.TO always has trades at the close(16:00:00). IVPAF's last trade yesterday was at 15:48:10. The 1.91 close didn't reflect the end of day drop in IVN.TO.
When IVN.TO spikes at the end of a day, while IVPAF doesn't trade, then IVPAF's price is adjusted upwards before the next trading day.
Even when IVPAF has no trades coming through, it's bid/ask is changing to reflect the changes of the bid/ask for IVN.TO.
IVN.TO and IVPAF are shares in the same company. At the end of the day their prices have to match.
Congrats on buying one cent above the low of the day.
I agree with what you wrote -
this sector seems more tangible and less risky and if you have the greatest deposit of copper and throw in gold, palladium, platinum, etc - as the building of the Chinese and Indians take place, the longterm prospects of your company are stupendous.
Ivanhoe's main action is on the Toronto Exchange.
4,453,360 shares of IVN.TO traded yesterday.
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 12/20/16 -- Ivanhoe Mines(IVPAF) today announced that the company is not aware of any unforeseen specific development, related to corporate or project-related events, that might be contributing to the recent decline in the company's share price.
The company stated that it is business as usual at all of its three development projects - Kamoa-Kakula, Kipushi and Platreef - and that it is extremely peaceful at the company's operations in the Democratic Republic of Congo. The expanded drilling program at the Kakula-Kamoa Project is continuing with seven rigs.
The company wishes all of its stakeholders best wishes for a successful 2017.
Investors
Bill Trenaman
+1.604.688.6630
Media
North America
Bob Williamson
+1.604.512.4856
Media
South Africa
Jeremy Michaels
+27.82.939.4812
www.ivanhoemines.com
Source: Ivanhoe Mines Ltd.(IVPAF)
The current DRC president was originally scheduled to step down yesterday. However, there was no election in November to elect a new president.
The supreme court decided that the current president should stay in office until a new president is elected.
I think the election was delayed in order to register the country's voters.
http://www.ibtimes.co.uk/drc-president-kabila-will-not-do-anything-that-unconstitutional-says-top-adviser-1596930
A nice hike in the target price by BMO today-
Lucentio
December 20, 2016 - 02:02 AM 92 Reads
Post# 25622936
BMO target now $5.75
target raised from $3.25 to $5.75 as of 20th Dec
Read more at http://www.stockhouse.com/companies/bullboard/t.ivn/ivanhoe-mines-limited?postid=25622936#SJ2rtvAPUtzPlPhg.99
A recording of the December 15th Kakula PEA
conference call is available until January 18, 2017.
Dial-in numbers: +1-905-694-9451 or 1-800-408-3053
Passcode 6300478
What an excellent CC!!!
Toot, I noticed that Robert Friedland feels the same way you do about the use of NPV.
Good Call!
I'm really impressed by how much better the numbers are for Kakula compared to an earlier economic assessment for Kamoa. 3 Mtpa (million tons per annum) at Kamoa resulted in a NPV (net present value) of $986 million. 4 Mtpa at Kakula resulted in a NPV of $3.7 billion.
Highlights from both PEAs are below. All of the numbers have changed significantly for the better.
I think we saw some sell the news profit taking yesterday. IVPAF climbed from a low of 1.39 on 10/27 to a close of 2.17 on the day before the news.
(12-13-2016)HIGHLIGHTS
Initial option for a single 4 Mtpa mine
The preliminary economic assessment (PEA) results finalized this week present two initial scenarios for development of the high-grade copper deposits at the Kamoa-Kakula Project on the Central African Copperbelt, west of the Democratic Republic of Congo’s Katanga mining region.
One initial option analyzed in the PEA is the development of a four-million-tonne-per-annum (Mtpa) Kakula Phase 1 Mine at the Kakula Deposit, in the southerly portion of the project’s discovery area. For this option, the PEA envisages an average annual production rate of 216,000 tonnes of copper at a mine-site cash cost of US$0.37/lb copper for the first 10 years of operations (see details Table 4, page 10), and peak copper production of 262,000 tonnes by year three.
A pre-production capital cost of US$1.0 billion for this option would result in an after-tax net present value at an 8% discount rate (NPV8%) of US$3.7 billion – an increase of 272% compared to the after-tax NPV8% of US$986 million that was projected in the March 2016 Kamoa pre-feasibility study. The internal rate of return of 38% would be more than double the return that was estimated in the March 2016 Kamoa pre-feasibility study.
Initial option for two mines producing a total of 8 Mtpa
The PEAalso analyzed an alternative initial option that could involve a two-phase sequential expansion of production to 8 Mtpa from the proposed Kakula Phase 1 Mine at the Kakula Deposit and also the Kansoko Mine at the adjacent Kamoa Deposit.
Under this alternative, the PEA envisages US$1.0 billion in capital costs and an average annual production rate of 292,000 tonnes of copper at a mine-site cash cost of US$0.42/lb copper during the first 10 years of operations, (see details Table 8, page 18), and peak production of 370,000 tonnes by year seven.
Under study: New option for one mine producing 8 Mtpa, plus expanded output options of up to 16 Mtpa from two mines
The follow-on PEA, now underway, is examining an alternative approach that would see development of a single 8 Mtpa mine on the Kakula Deposit. This option is expected to have substantial advantages over the development of two mines to achieve the same production rate. Planned studies also will assess higher mining rates of up to 16 Mtpa, which would utilize high-grade copper mineralization from both the Kakula Deposit and the Kansoko Sud and Kansoko Centrale areas of the adjacent Kamoa Deposit.
(2-23-2016) Highlights of the Kamoa 2016 PFS:
Annual mine production of 3 Mtpa at an average grade of 3.86% copper over a 24-year mine life, resulting in annual copper production of approximately 100,000 tonnes.
Initial capital cost, including contingency, is US$1.2 billion, approximately US$200 million lower than estimated in the Kamoa 2013 PEA.
Life-of-mine average mine-site cash cost is US$0.75/lb of copper.
After-tax net present value (NPV) at an 8% discount rate of US$986 million.
After-tax internal rate of return (IRR) of 17.2% and a payback period of 4.6 years.
High-grade copper concentrate with an average grade of 39.2% copper and very low arsenic levels.
Improvements to the mining method have the potential to reduce average mine site cash cost during the first phase to US$0.61/lb of copper, and improve the after-tax NPV at an 8% discount rate to US$1.182 billion, the IRR to 18.9% and the payback period to 4.3 years.
“The results of this independent pre-feasibility study confirm the robustness of the Kamoa Copper Project over a wide range of copper prices, with the potential for significant improvement in the results as we move forward on the Feasibility Study,” said Mr. Friedland.
“We know of no other copper project in the world that offers the potential of multi-decade, large-scale, mechanized production from a near surface, stratiform deposit grading nearly 4% copper, with the demonstrated potential for further high-grade discoveries nearby, and located close to a major mining centre.