i have read so much & understand, page-62

As it turns out, the 68% included in the email to me was a typo. The comment from RDD that we can expect higher than 70% is not backed by GBG. No light on whether the mix of Low-Medium-High grade DSO will change this quarter. We will just have to wait until the next 2Q'13 production report. Just hope that we have enough DSO and Magnetite to fill the ships as they come in to minimise negative cash flow which contrary to other opinions I believe will be about $A15M-20M per month. GBG response to my questions below. sdo

The Karara plant is designed to produce magnetite concentrate with an Fe quality of 68%. To date we have produced concentrate up to 65%. Once we reach steady state production we would expect to produce a consistent 68%Fe concentrate product. (I have also noticed a typographical error in one of my earlier responses to you on 4 April. In response to your question regarding the achievement of 63% grade, on the day after we announced the achievement of 63% grade, I said that we had achieved 68% grade. This was obviously a typographical error, as you can see from the wording of my response in the context of the premium question.)

We have previously said the strategy has been to use the DSO production in these early stages of the project to allow us to utilise as much infrastructure capacity as possible during the variable production expected during the ramp-up of the magnetite concentrate plant. We produce a range of low, medium and high grade products which are being sold to the market. Our next quarterly production report will provide a specific breakdown of tonnages of each specific product.

Regards,...