a billion tonnes of iron ore, page-15

Vayama,

As a large shareholder of IFe for awhile now I have to pull you up on a couple of your facts.

The crystaline magnetite has a current JORC resource of 60mt(not 10mt as you state) which would have been closer to 120mt if the consultants allowed Ultima dam west to be included, but it wasn't as they wanted a few more holes to count it as JORC compliant. This will be proved up very soon, and it will head towards 200mt in the next exploration program.

ALso this crystaline magnetite is a very rare magnetite and hardly found anywhere in the world. That is, it only needs minimal grind to get it to a 70% Fe concentrate. Much lower cost than normal magnetite. Also it is low in all impurities. It will not need big money to do but this will be the second stage of revenue for IFE. This is a premium product and they will get top dollar later on.

The 10mt you refer to (which will be more like 15-20mt) is the top layer of the area which is made up of hematite and magnetite with over 50 and 60% Fe. This is what will be initially produced cheaply, and I agree my calcs show a
$20-25 a tonne profit and even at 1.5mtpa gives a profit to IFE of $30millp.a.

TRF will get 20% free carry of this profit not 60% as you stated. Of course they are 50% owners of IFE as well.

I agree the BIF ore at Hercules is the last stage and will need big money to get going, but the grades for magnetite is not as bad as you state.

I hope my truthful ramping helps investors.