copper confusion, page-167

Tuskie,

Metallurgical testing has been exhaustive and has seen over $4 million dollars expended to get the optimal results.

This is from the 2009 Annual Report :-

Metallurgical testing has been expanded considerably to completye circuit design catering for all four major components of the ore bodies within the Project, oxidised CU and CO, native CU supergene, Chalcocite/Co -pyrite supergene and Chalcopyrite/CO-pyrite primary ore types.

Testwork has focused on liberation of large-nugget native copper prior to milling and the production of a high/grade copper/gold concentrate and a saleable cobalt product post the milling circuit utilising gravity separation and flotation processes. Oxidised ores and native CU is in final stages of assessment prior to fine tuning, with only fine tuning required for the supergene and primary ore circuits, still in progress. Mineral liberation Analysis of the primary ore flotation products shows a high level of mineral liberation from the ore at 125um grind size "

It goes on to state "Examination of hydrometallurgical treatment of the oxidised zones using Leach/Solvent/Extraction/Electrowin and similar techniques for copper and cobalt recovery has been progressed at the Company's on site laboratory. Under certain process conditions recoveries of CU of greater than 95% and Co up to 90 % have been achieved. Current investigations are testing the overall circuit options for leaching, extraction and metal recovery in "closed shop"simulation testing."

The 2010 Annual Report states
Metallurgy test work ,includng bulk- sample processed through Pilot Plant, indicates metal recoveries are high. The bulk sample returned an indicative head grade of 4.37 % copper"

The Annual Report of 2011 goes into much detail on the metallurgical work done and is much too long to be restated here but a read of it will give the reader an indication of the amount of test work that has gone in to achieve optimal recovery results.

The 2012 Annual Report under Key Input Assumptions to Preliminary Financial Model states Äverage Metal Recoveries
Copper 95 %
Cobalt 90%
Gold 75%
Magnetite 55%

In regard to the high quality copper finds made in the process of the dewatering program at Rocklands South, follow up drilling is underway to extend the length of strike . That is the point I have been endeavouring to get across.

You state that in your opinion Wilgar wil only be a small pod.

I find this a rather curious observation when there has been no deep drilling and the ore body is open in a number of directions.

Yes I am more confident of the data provided by the Company .

You are entitled to have an opinion . My judgment is that the company has got it right.

The processing plant is being constructed right now and the weather conditions--mostly sunny up to and including Sunday have been fortuitous with as yet no sign of the wet season.