The company recently wrapped up a compelling scoping study for its gold deposit, which proposed an 8.3-year mine life producing a considerable 75,000 ounces annually at an all-in sustaining cost of US$1490 (A$2490) per ounce. It will deliver a net present value of US$235M and a 31 per cent internal rate of return at a now very conservative US$2200 per ounce gold price.
With today’s gold price hovering around US$3000 per ounce – some US$800 higher – the project’s economics look immensely juicier, projecting total sales of US$1.344 billion over its life, with US$400M dropping to the bottom line as net revenue.
The Trump administration seems evidently more interested in the project’s REE potential, referring to the project in a press release as “America’s second rare earth elements mine”.
President Donald Trump’s executive order earlier this year aims to slash US reliance on China, which controls about 70 per cent of global REE supply, for the critical minerals that power everything from electric vehicles to defence tech.
Colosseum sits less than 10km north of the globally significant Mountain Pass mine. Geological studies and gravity surveys suggest Colosseum shares the same mineralising event and rock types as its famous neighbour.
For a company sporting a market cap well below $20M, Dateline is attracting the attention of government heavyweights. The gold numbers are enticing thanks to all-time high prices, but a government-supported REE kicker could be the kickstart Colosseum needs to turn the corner from explorer to developer.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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