AUZ - chart, page-423

Hi ******

Thanks for the email.

I will always make time to answer shareholders questions. After all, it’s your company as much as it is mine.

Regarding your below question, there has been at least three separate runs of Sconi ore through the SGS lab in Perth so we have a very good idea of metal recoveries, acid consumption etc.

We have also completed two batch runs of Sconi ore through the Simulus lab so we have quite a bit of data now and are therefore very confident about the processing flow chart.

So we know that we can make battery grade cobalt sulphate and nickel sulphate from the Sconi ore. (We have also produced high purity scandium oxide from these runs).

The potential off take guys are aware of this and engineers from a number of these companies have sat down with Tim (AUZ COO) and myself and gone through this processing flow chart step by step. They subsequently approved our proposed flow chart as being the most appropriate process for producing the two sulphate products given that it doesn’t utilise any untested (commercially) or proprietary processes.

(Potential off take partners really dislike the words “unique”, “proprietary”, “confidential” when referring to processing as they tend to be a euphemism for “high risk”. So the fact that we are using flow charts based on that used by Vale and Glencore gives these guys a great sense of relief).

It is unfortunate that the demo plant is running a little behind scheduled but it hasn’t adversely affected our conversation with the potential off take partners.

I hope to be in a position to update the market on the demo plant and off take discussions early in the New Year.

I wish you a merry Christmas and a great 2018

Regards

Ben.


I flicked off an email, not expecting a response till the new year, and he emailed me back in like 2 hours. what a bloke, the day before Christmas to! have to say for a MD, he is good!!

the response has definitely put my mind at ease, and will be a fantastic new years indeed.

cheers AUZ holders,

JD.