General Chat / Discussion, page-217

Look, I am just going to put this back up, and take this picture as this debate is getting open ended:



The picture above explains things. First step is to get a MRE with sufficient resources in the Indicated and Measured Resource category, as that is the only thing you can do a PFS and DFS on. A PFS is generally plus or minus 25%, whilst a DFS is plus or minus 10%, meaning both have some certainty around costs and capex.

A Scoping Study is still highly highly highly conceptual is my point and the plus or minus is very very very high, and a SS is only indicative and in effect they be treated with caution, because you are essentially using Inferred Resources in that study, by and large. To do a proper study you need to understand your resource, and your METs, and lots of METs is a key to that.

A Measured and Indicated resource is about geological confidence by and large, and it is only when you have sufficient resource in this category that you can do you PFS and DFS studies, and those studies require some decent METs been done as well over a number of the hits in the area you are proposing to mine is my point, and is a basis for understanding your resource. And at this point in time, based on the latest MRE IXR still needs more resources in those fields, hence why it is doing only a SS btw.

Now lets talk PFS and DFS - looking at the X axis in the above pic, what you will note is that you run you parameters over the Indicated and Measured Resource (i.e. including environmental and economic) so as to move that resource in the Proven and Probable Reserve category, because at the end of the day all you mine is those Probable and Proven reserves - your payable loads are in those categories.

In other words, I reiterate this talk is too premature to have as IXR is at the start of process, and nowhere near the stage to run parameters over a resource to get to a Proven and Probable Reserve that underpins PFS/DFS studies. Obviously as part of a PFS they will have a mining plan and some gauge over environmental costs to. At this stage, it is all too early to determine how profitable IXR is or is not, hence the risks of investing this side of the market.

I also reiterate my point - the debate can be only had when the MRE is out showing where the Measured and Indicated resource is as that will be the basis of your PFS as you need to define your proposed mining area first. And not all the mining tenement will be mined is my other point. We'll find out soon enough is my point, but in time, and this side of the market moving from explorer to miner is always a risk, as some make it and others don't. I believe environmental issues can be addressed, but we'll know definitively enough in time is my point, and not now because of I repeat, refer back to the x axis above because all those parameters are run when you define a Measured and Indicated resource first.

All IMO