A comparison between EQR and G6M, page-16

The low grade stock pile is a beneficial asset as it allows the company to blend their ore so they can more easily provide a set grade of feed into the plant. I believe if we didn't have this on hand then potentially a lot more thought has to be put in to the mine plan and stock piling of different ore etc so that grade blending can be done to lessen the impact of mineral loss from an ever changing grade in the feed input.

"The JV is 50:50 for the low grade tailings only, of which there is 12MT and will take 12 years under the JV to process."
- The plant is planned to run at 1mtpa. If they are blending the high grade pit with the low grade stock pile at lets assume 50:50 it means the low grade ore is going to take 24 years to be processed.

"I would like to see the low grade stockpile worked through as quickly as possible so that the 50:50 profit sharing agreement, is finished with as soon as possible."
- Have you looked at the BFS? if we were just to work through the low grade stockpile ASAP we wouldn't have any real cashflow for 12 years as an investor in the company this would not be something I would want to see. We need to make some real money ASAP so we can explore/ramp production up further/take over surrounding deposits/pay off debt.

"How does that work with a 50:50 arrangement on just the low grade?"
-I don't think this is anything new or different in the world of mining. They just simply test the resource grade and come to an agreed rate of allocation. EQR/The JV gets 95% of the sale price at the mine gate. The other 5% and adjustments are done post customer grade testing. So we will always know exactly what grade is ending up at the start of the cash coming in and can be reconciled from there. As to the allocation for plant costs towards LGS and openpit ore etc I assume this will involve some very detailed accounting etc and will all come out in the next few years. What we do know is that both EQR and Cronimet are in the business of making money and both are putting a lot of resources and time into Mt Carbine for good reason.

It is worth pointing out that the JV is 50:50 however EQR get a 2% royalty on the low grade stock pile.

"I am just uneasy with Oliver as chairman."
-Micket how long have you held for? I have been in from before Cronimet was involved and the companies movements since Cronimet got involved have been a lot more successful when compared to before. The 4.2m advance from the customer at 0% interest is via Cronimet and I believe it is part of the Cronimet 50% of the costs for JV.

In My comparison I didn't mention the JV. I was more focused on the resource/production. I think the JV although it results in Cronimet taking 50% of the profits from the LGS what we gain in support (financial/technical and 100% off take agreement) is tremendously more valuable than the 50% of the LGS.