program update, page-8

Hi Shimmer,

You are right Mt Weld is smaller than Ngualla

Ngualla 170,000,000 @ 2.24%
Mt Weld CLD 14,949,000 @ 9.70%

But remember grade is king :)

Ngualla has 12 x the rock to shift but only 1/4 the grade of Reo

After concentration to 36% Lynas' tailings will have a higher grade than Ngualla:)

Interesting News release by Peak today.

Some points that I take is that Peak has decided that they are going to concentrate on the 40 Mt @ 4.07% and upgrade it by infill drilling

I would say that this is a very good approach. There is no point mining lower grade resources, if you have to compete in the future with possibly lower prices for Rare Earths

They are concentrating on the highest grade in the shallowest part of the resource which just happens to have the simplest leach process. How good is that

What I don't like is their drilling progress

"Eight drill holes have been completed for 897m of the estimated 30,000m program planned for 2012"

I am assuming that you are hampered by the wet season and this also causes delays when you are in production. You may even have to oversize a plant to compensate for delays during the wet season

One thing Mt Weld has going for it is that I beleive it only gets about 250mm of rain a year and they are planning to run the plant 24/7

Well the drilling at Ngualla is going full steam but just for a laugh have a look at the drill rig. Look carefully and you will see a bit of dust coming off the drill bit. I can see the dust masks the drill crew are wearing. Must be all that lowest grade Thorium and Uranium:)


Tonio