Mining Stock Education · Wednesday, July 15, 2026
Despite a general preference for oxide deposits due to lower costs, Dr. Rob Stevens emphasizes the critical need for thorough due diligence. He warns that investors must scrutinize oxide deposit grades, recovery rates, potential metallurgical complexities, and overall tonnage, as a significantly lower grade or smaller size could outweigh the cost advantages compared to a sulfide deposit.
“Uh, however, and this is a big however, uh, you need to really dig into the details. So for example, uh, what is the grade of the oxide deposit versus the sulfide deposit? If, for example, the oxide deposit is half the grade of the sulfide deposit, then, uh, you know, it might not be as attractive.”
“Uh, also, uh, what are the recoveries? Uh, you know, if the oxide recovery is significantly lower than the sulfide recovery, that could also offset the, uh, the cost advantage.”
“Uh, and, and, and, you know, the last point I would add is, is the potential for expansion. Uh, sometimes oxide deposits, uh, are limited, uh, in their size and their vertical extent. Uh, and sulfide deposits, uh, can often be, uh, much larger and have the potential for significant expansion.”