Zenyatta Ventures Ltd

"Does anyone know how long it takes normally for a PEA to be completed?"chriskirby

Normally, 4-6 months but,...more later. LTG

The PEA has to serve a Purpose.

Original intentions for doing a public PEA have long passed.

My argument is a “PEA” now serves no purpose, and that only a “Buy-out” can result.

The problem, Graphite is not a normal metals market or industry we are accustom too, like Gold, Silver and other Base Metals. There is no standard public pricing, no storage facilities to sell into and for marketing thereafter, like the LME. You have to find your own buyer(s) and establish your own pricing and make your own market. Not all Graphite is created equal adding complexity into the equation.

The Graphite Industry is super-secret, our NDA (35) companies are super secretive about their own product specs and economics. The ZEN Play is the NDA Industry at this time, not the Market, as the two are not compatible.

Just imo but, I believe ZEN could have released a qualifying ni-compliant PEA last June, based on the RE assumed pricing of 8500 and bench scale met. However, at that time, End-users were just starting to get samples, for verification and compatibility testing. I presume a decision was made to wait for End-user confirmation of testing, i/p’s on prices and/or for better pricing as proof to validate the PEA and for improved justification of process economics. Later in the year, NDA’s pushed for additional work and to prove Pilot Plant Commercial viability.

The problem, were now dealing with 35 end-users and have learned ZEN conceivably will be supplying 4 different sectors of the Graphite Market (Li-ion, Fuel Storage, Met Powders and xxx ??? a mystery sector)

As Rennie69 pointed out, the PEA, “can only demonstrate the potential viability of mineral resources, not the technical or economic viability of a project”, which is PFS or higher evaluations.

AE has already stated 16 Dec 2014, that the process and engineering data has already exceeded the standard PEA for economic assessment. Our priority is the NDA Customer!

First thing to note, is this quote and explains what ZEN is targeting, “Our priority is on defining the best possible process and meeting customer expectations on product quality for a broad range of applications with demanding specifications.”

Our priority is the NDA Customer!

And second explains we have gone far beyond a normal PEA, “The engineering work completed to date has been much more detailed than is normal for a project at the preliminary economic assessment (PEA) stage. We believe that Zenyatta is a leader in developing a new cost-effective process for the production of ultra-high purity natural graphite.”

I believe imo, the PEA cannot serve its original purpose, to show the potential viability of mineral resources. We are far past this point!

End-users want,

1. the technical and economic viability of the project (>PEA)

2. Commercial applicability of a proven process and flowsheet (>PEA)

For what you may ask? For Fair Valuation and Offer!

Just my view, a PEA for the secretive Graphite Industry, now serves no purpose for this market, but already has in private and more, the PEA+ in proving technical and economic viability to NDA’s and more importantly, Commercial applicability. The NDA’s and ZEN will determine price, not the market in a first offer and the question of fair value?,… we have to trust ZEN management.

We await, “Off-Takes”, “Strategic Investment” and “Buy-out” offers, agreements and partnered interests and not the PEA imo.

Cheers, Mark