Initial Licenses to National Mining Companies
Initial work carried out by CAR Geoscience geologists has resulted in 12 licenses being granted on areas covering 6,000 sq km to 4 national mining companies.
The national mining companies are focused on the following specific resource areas: Iron Ore, Copper, Precious Metals, Industrial Minerals and Battery Minerals.
The Iron Ore Company has taken 5 licenses and from initial work they estimate that there will be between 2.5 bn (t) – 5 bn (t) of Iron Ore on the properties licensed.
Each of the National Mining Companies has a right of first refusal on areas that CAR Geoscience surveys, providing a core revenue stream for CAR Geoscience.
Based upon resource estimate on initial Iron Ore licenses of 2.5 bn (t) optimum production of between 50 m (t) – 100 m (t) could reasonably be expected.
Potential revenue streams from a basket of commodities
CAR Geoscience gets different royalty streams from different commodities
| PRECIOUS METALS | BASE METALS | DIAMONDS AND OTHER PRECIOUS STONES | ||||
| 6% | 4% | 6% | ||||
| For example an Iron Ore mine with 500 m (t) of resource would look to achieve production of 20 m (t) per annum by year 5 of its license, which would result in the following revenue streams for CAR Geoscience:* | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6-25 | Total over life of mine |
| $0m | $9m | $18m | $36m | $72m | $72m per annum | $1,575m |