Gangfeng Li’s Capex intensity lithium peer comparisons, page-105

In reference to the above, So after my illustrations to Manny recently on FFX Fe potentially being too high, what were my reasons?

Reason was, grinding SC to consistency of fine sand increases removing of deleterious elements including iron oxide. And yet the Fe is still RELATIVELY very high compared to say Greenbushes with a grindssize of half a centimetre, 5.56mm, it’s Fe2O3 (Fe) is 0.70% average. FFX is just 0.14 average below that. And yet note the grind size. Where should FFX iron oxide be? Should it resemble tech grade %? Below 0.20? Or even 0.10? Remember FFX SC6 has been stripped down to fine sand consistency, This statistic of 0.56% indicates that the ore is really difficult to process for SC6 specification at conventional grind size ratios.

In short with grind size of 100-150 micron (fine sand consistency) 0.56% is very high. To have a better input and output, the Fe % would likely need to be much lower—just consider the grind size already, it may not be able to leach out Fe species % to meet battery grade specifications. There’s a risk implied there, and the company has not released the scoping study on it. Shareholders deserve to know what happened.

The key factor to bear in mind is that with further processing that Fe level drops. It may not be isomorphic in decreasing depending on

The CRIMMS (company name) unit mentioned in the DFS is just another high intensity magnetic separator upon looking at CRIMM’s website. (If anyone wants help locating just ask)