RNU - GRAPHITE and Lithium OPPORTUNITY

[blockhead]

Schumi, you have obviously done a good bit of research on RNU, finding the mineral is part of the equation, what difficulty do you see in going from discovery to sales..ie $$ in the bank !

[SCHUMACHER]

Schumi, you have obviously done a good bit of research on RNU, finding the mineral is part of the equation, what difficulty do you see in going from discovery to sales..ie $$ in the bank !

Blockhead- obviously there are a number of factors to crossover from explorer to producer
i.e JORC Compliant- to Jorc Inferred - measured and indicated- viability and economical grades (tick)

The only DIFFICULTY is time IMO
FIRSTLY WE HAVE TO COMPLETE THE DRILLING PROGRAMME and Metallurgical test work
INITIATION OF FEASIBILITY STUDY and so on - i reckon potentially 4 years till production and sales$$$$$
Could be sooner considering they have close to surface deposit and how swiftly they get to BFS (THIS IS KEY AS ONCE B.F.S is completed it could be all on) lets say in 4 years from today the share price is $1.00 then you have gained 4000% cant gt that in a bank or property

SYR got their resource / plant etc and will be producing 2nd quarter of 2017 and they currently at $5.80 share
Albeit they have roughly 7-8 times our deposit however we have potentially similiar grades around 8-10%

so in terms of timeline to where they were at 4 years ago their shareprice was around $2.50 share
if we divide that by 8 we get 30c share in comparison LOL - so im not saying we should be trading at 30c share today but at least 10c I would think


SO WHAT DO WE HAVE TO DATE ?

Renascor recently defined the largest reported graphite Mineral Resource in Australia at the Siviour
Graphite Deposit, with a JORC-compliant Mineral Resource estimate of 16.8Mt @ 7.4% total graphitic
carbon (TGC) for 1,243,200t of contained graphite, including high-grade mineralisation of 5.9Mt @
10.0% TGC for 590,000t of contained graphite. See RNU ASX release dated 17 March 2016 (the
information contained therein has not materially changed since first being reported).

SO from here on there will be a number of trigger or catalysts

Graphite has been named the new "black gold " for a number of reason

Explorer to producer ................

Resource delineation drilling and trenching allowing for a maiden Indicated and Inferred Resource is next on the list - they going back again this month to drill more - so in 12 months we expect scoping studies , and feasibility studies to be done if we firm up to Measured and Indicated resource from estimated

This project hosts the following resources: this is what we need to understand .....

Measured mineral resource of ??????
Indicated mineral resource of ???????
Inferred mineral resource of ????????

DIAMOND CORE DRILLING CONFIRMS HIGH-GRADE GRAPHITE
AT AUSTRALIA’S LARGEST JORC GRAPHITE RESOURCE

• Diamond drilling intersects shallow, high-grade graphite at Renascor’s Siviour Graphite Deposit,
with assays for total graphitic carbon (TGC) of up to 20.5% (SIV034) and intervals including:
o 27m @ 13.3% TGC (from11m to 38m) (SIV035),
o 8m @ 8.2% TGC (from 30m to 38m) and 15m @ 10.2% (from 40m to 55m) (SIV034),
o 34m @ 5.9% TGC (from 6m to 40m), including 16m @ 8.8% TGC (from 18m to 34m)
(SIV033), and
o 35m @ 6.7% TGC (from 31m to 66m), including 15m @ 10.1% TGC (from 50m to 65m)
(SIV032)

• Assay results confirm continuity of high-grade graphite, suggesting the Siviour mineralised body
has a shallow, near flat-lying orientation, with substantial true thickness
• Results also include substantial intervals of high-grade graphite within Inferred Resource (SIV034),
suggesting the potential to upgrade the resource in grade and volume
• Drilling targeting further shallow, high-grade graphite zones scheduled to commence later this month

For example , A cut-off grade of 4% C could be used for the “higher grade” zones and 2% for the “lower grade” zones. A relative density of so many tonnes per cubic metre will then be assigned to the mineralized zones for our resource estimation.


What we need to show the market and financiers through our drilling and exploration programme is to improving the geological confidence of the deposit and its contained mineral resources, included recorded drill holes strikes

Proven And Probable Mineral Reserves

As a result of the additional exploration, the following maiden proven and probable mineral reserves will need to be declared at Siviour Deposit

I.E
Category

Tonnage

C Grade (%)


Proven and Probable

Proven reserves are reported as the Measured Resources inside the designed open pit and above the grade cut off VALUE % Similarly, the Probable Reserves are reported as the Indicated Resources inside the designed open pit and above the grade cut-off of VALUE %

then comes .... FULL FEASIBILITY STUDY COMPLETED (i.e. Bankable Feasibility Study)

The COMPLETION of Bankable Feasibility study becomes a significant milestone WHICH WILL ATTRACT FINANCE

It indicates the project has attractive economics and that it has one of the lowest operating costs in the industry. So this is where the size and grades of our graphite deposit needs to be large enough to realize a very long mine life and the plant is scalable which equates to a nimble ramp up of production if required.
The plant will be able to produce a high quality graphite concentrate, which can supply the entire spectrum of end uses for natural graphite including the refractory, graphite foil and battery-anode (electric vehicle battery) markets.

The feasibility highlights will show things like

1 Post-tax: NPV (10% Discount Cash Flow)
2 Post-tax: IRR(
3 Payback >????? years
4 Capital cost (“CapEx”)
5 Design Development Allowance
6 Contingency
7 On-site Operating Costs (“OpEx”) per tonne of concentrate,
8 Transportation per tonne of concentrate
9 Transportation per tonne of concentrate (from Adelaide Port to / Local or European Customer Port
10 Average annual production of concentrate
11 Life of Mine (“LOM”)
12 Graphite concentrate sale price (US$/tonne at Start Up – 2018-2020)
13 Average Head Grade %
14 Average ore mined per annum
15 Average stripping ratio
16 Average plant recovery
Footnotes:
1. Assuming project is financed with 50% debt and 50% equity.



Internal Rate of Return (“IRR”) – Project Equity

-NPV @ Discounted Cash Flow
-Project Payback Period



Mine & Process data

Proven reserves e.g 10,000,000 tonnes @ 8% C grade
Probable reserves e.g 8,000,000 tonnes @ 8% C grade
Grade (graphitic carbon) e.g 8% average plant head feed over LOM
Waste to ore ratio e.g 1:1
Processing rate ---???? tonnes per annum
Mine life e.g 20 years
Recovery e.g 90%
Average annual product tonnes e.g 30,000
Construction Capital Costs – CapEx (in US$ millions):???

Capital Cost US$....??
Design Development Allowance US$????
Contingency US$?????
Total US$....???????

So for example we could be looking at timeframes like 16-17 months for build-time of plant e g............

The FS considers a mine that will produce an average of ????? tonnes per annum of ore, which is processed to produce an average of has estimated a build-time of 17 months from the point the project is fully funded. The FS assumes that the mine is funded on a 50% debt and 50% equity basis.


PROPOSED DEVELOPMENT
The proposed development of the Siviour graphite project includes the construction of an open pit mine, a processing plant with a capacity of ???????? tonnes of ore per annum and all supporting infrastructure including water, fuel, power, tailings, buildings and permanent accommodation.


DISCLAIMER : ALL THIS IS PURELY SPECULATIVE so DYOR and is not a recommendation to BUY , SELL OR HOLD RNU
The Mine and Process data ive provided is speculative and not to be taken as fact

However you may be mad not to with the future they have

Schumacher

[blockhead]

Appreciate your time Schumi, thanks