"Hawsons" a green steel devolper in making, page-144

The last in-fill drilling round was able to convert 96% of the resource section where they drilled from Inferred category to Indicated category at cut-off grade of 9.5% DTR.

Given the special characteristics of the soft ore at Hawsons project and the resulted final grade of the IO products that HIO can produce is at world's highest grade of 70%, the cut-off grade can be reduced to say 9% DTR and thus it would end up with virtually 100% conversion rate of Inferred category to Indicated category. What this means is we can reasonably expect an extremely high rate of conversion to upgrade the resource this time with drillings about to start.

Previous resource utilization for NPV was 201mt out of total resource of 348mt which is 58%. I am confident we will see resource utilization of at least 250mt/348mt which is about 72% and would increase NPV of the Hawsons project almost 25%. That would be a very nice increase.

The MC cannot and will not stay this low for long because it defies all logics. At current MC of $65mil with cash on hand of around $37mil, the EV of HIO is a mere $28mil that would not be enough for any other iron ore exploration companies out there to carry out its activities of drillings, metallurgical testwork, all types of engagements with government levels, permits, marketing, PFS, key personels hiring,...and whole hosts of other activity expenses during 2-3 years from their 1st drilling holes of iron ore intersection, let alone finding the resource of the scale of Hawsons project. In the words, any iron ore exploration company out there must disband and go home or HIO's MC must re-rate to multiples of its current value.