Ann: Growth potential of Sconi Cobalt-Nickel Project continues, page-85

The following "back of envelop" clacs are to show what trends are appearing from existing extensions from the previous 2 updates. The data used below is from the better grade seams at Lucknow which can be used for blending. I have not used the lower grades seams. Some areas were drilled at 20 metre x 40 metre to allow a measured resource to be created. So the probability is that my volumes calculated are at least indicated classification. One can triple these volumes for total inferred classification
Lucknow
Cobalt
Av Seam 14.6m
Av Grades 0.46%
Volume from this updates; 9.855mt
Nickel
Av Seam 10.6m
Av Grade 0.95%
Volume from this update; 7.155mt

Cobalt grades looking excellent from Lucknow and considering this lease is not renound for its nickel, 0.95% is definitely economical once NiEq is taken into consideration. Uniformity for nickel is hard to assess with the data given. Most assays returned showed at surface or very close hence trending to good uniformity throughout albeit dipping. Trend at Lucknow is definitely pointing to a significant increase to the probable reserves for JORC compliance and improved Grades
Nice volume of quality grade of Co to blend into the lower grades at Greenvale and Kokomo. JORC stands at 0.1%. I would expect and increase up to 0.11 to 0.12% which will make a huge difference to the NiEq NPV and for the miners, OPEX.

Now add to the above figures my previous cals from Greenvale thus far. (Many assays still pending)
Greenvale 11.6mt, Lucknow 9.8mt for a total thus far of 21.4mt.
The BFS used 33mt measured to indicated. Add 21.4mt at indicated or better and one can see the trend will be a significant increase in the JORC. How much of this extra volume in percentage terms will be used in the revised BFS i don't know but can conclude and agree with Ben re "a significant upgrade"
Many assays opened at depth and quite a few Assays pending will only add to the above trend and remove any doubt of a quality reserve with proven refining metallurgy data through the trial HPAC plant.
Bare in mind Greenvale deposit is centered on the Greenvale Mine, which operated between 1974 and 1992. The orebody was a nickel laterite grading 1.56% Ni and 0.12% Co. So my cobalt bending grades of 1.1-1.2% are plausible.Need the pending Greenvale assays to make a final conclusion on nickel.
Finally the drilling procedures, sampling methodologies, sample analyses and the drill hole database were audited by Expedio data management. There should be no reason for anyone to state that Sconi is low grade or lacks in economics of scale.
Hope the above helps and and IMHO.
cheers