World class Nickel deposit and potentially the 4th largest Nickel laterite deposit in the world. It is a combined indicated resource of 275M tons of ore at 1.3% nickel (at a 0.9% cut off) which equates to an interest of 2.0M tons of Nickel to TMC. From what I can see, considerable amount of work has been done over the years in defining this resource, including sinking 3,866 test pits, and in defining the metallurgy (it is ~50/50 saprolite/limonite and therefore suitable for leaching or smelting). The material is close to the surface so cheap and relatively easy to mine. TMC is in quite advanced discussions with a number of major companies to participate in the development of these resources.
TMC has already negotiated a contract to surface mine and ship crude saprolite ore to a ferro-nickel smelting company in Japan (Nippon Metals & Alloy Inc). The 5 year contract is for 350,000 tons of ore at a price of 23% Nickel spot (currently over $14,000/ton). Operating costs are estimated at $2,866/ton with a capital cost of $2.5M. Net annual cashflow to TMC from this contract (assuming a Ni spot price of $12,000/ton) is estimated at £5.2M. TMC are also in advanced negotiations over a further 300,000 ton pa contract for delivery to Japan and a 500,000 ton pa limonite contract with an Australian company. Should these come to pass the annual cashflow to TMC is estimated at £12.8M. The object of these short term contracts is to generate the cash needed ($20M) to allow TMC to complete a bankable feasibility study into a subsequent large scale (>22,500 tons pa) operation. It is worth noting that an independent consultant has identified 7M tons of reserves at 2.1% Nickel (at1.8% cut off) in a selected area, which will form the basis of the direct shipping operation.
17.......Onca-Puma........Brazil........Canico......Saprolite.......110.....1.80%...1.98
******Recently sold for £430m (net of cash on-hand) Dec 2005
Carpathian - epic CPNR
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With Gas prices in Europe continuing to rise and there being a well developed infrastructure in place, then at current share price level this will easily multibag on just 1 successful drill. They have current producing gas & oil assets and yet mark cap is £2.86m...a bargain entry point at present...
Janovice
Its Ja3a gas discovery well is now in operation, and should produce more than $600,000 of annual net operating cash flow.
Krásná
The Krásná oil field was discovered and tested just prior to the end of communist rule in what was then Czechoslovakia. Crude oil is contained within Devonian carbonates at a depth below the surface of about 1,600 metres. The two wells are producing approximately 100 bbls of oil per day with 26% water. Carpathian has an initial 75% interest in Krásná, which will reduce to 50% revenue interest after payback to the Company of capital costs.
Rožnov 90% interest(contributing 100%)
Together with the Morava project, the Rožnov project is likely to be the cornerstone to the Company’s future in the Czech Republic. This project holds the potential for an aggregate reserve of 250 BCF.
Morava 90% interest(contributing 100%)
Another significant project, Morava holds the potential for a target in excess of 7 million bbls of oil. The Company has been decide to pursue two larger prospects in the northern part of the licence blocks. Lead 4 represents a ‘roll over structure’ on the downthrown side of the Vienna Basin fault. OMV Reports the Significant Natural Gas Find in the Vienna Basin.
