Ann: Pilgangoora Resource Upgrade-PLS.AX, page-151

I think your right JJ but it might be in 2 stages.

Initial 2mt than increase to 4mt in year 2 or 3 which brings a number of benefits:

*low CAPEX number for the DFS/debt financing discussions which will help when banks stress test the financial model
*Mine upgrade being paid out of earnings - No additional debt or dilution
*A smaller mine has a shorter time frame to get into operation and reach name plate capacity
*All the usual operational issues will be sorted by the time stage 2 comes online

If the market is comfortable that the company can delivery stage 1 (2mt) in a timely fashion than it and the majors will have the confidence PLS will be able to upgrade throughput based on market demand ........ in not inconceivable to have a 8mt mine within 5 years, 4Mt going into spodumene concentrate for export to the convertors while the other 4mt goes into a JV hydroxide processing plant .

If thats the case than the additional drilling is warranted as mining 8mt pa exhausts our 129mt resource very quickly!