Ann: Investor Presentation - Black Swan Feasibility Study, page-78

Interesting plan but seemingly full of risks and holes


0. A ‘Probable Ore Reserve’ is the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Ore Reserve is lower than that applying to a Proved Ore Reserve.
Consideration of the confidence level of the Modifying Factors is important in conversion of Mineral Resources to Ore Reserves.
A Probable Ore Reserve has a lower level of confidence than a Proved Ore Reserve but is of sufficient quality to serve as the basis for a decision on the development of the deposit.
31. A ‘Proved Ore Reserve’ is the economically mineable par

so pos has vast majority still in probable

it is actually as stated using resources in the plan

it’s embarking on 10000 m drilling program - as stated previously you pos need to move more to reserve from resource - again you do t mine a resource you mine the reserve - refer to jorc explain actions above - and it should get more into proved category

costs are calculated in 10o percent co rained nickel of proven and probable reserves and resources used in plan - by definition that’s odd in itself as each category has different levels of confidence

15 months now after it proceeds to get the plant constructed and commissioned

579 kt on proven reserve I to a 1.1 m ton per annum plant- so that’s 6 months highly confident production- then say I’m tough 2.5 years processing higher grade provable lower confidence material - then some time processing ore still classified as resource and hoping all the nickel comes out

still has huge risks to economics given the reserve and its categories - its assumptions ( using resource items in forecast production ) and noting it is embarking on 10 klm of drilling into move the meddle of resource to reserve

noting as well the dewatering is required before you can drill and hopefully better define the resource and reserves- which then feed into the mining plan and the economics

a lot of money required to get this moving as it takes a lot of time to drill - define and then fix then enter into 15 months construction and commissioning

and by then it will need more updated studies no doubt

can see it being moved Just talked forward until it has as always required sorted the reserve out which still has next to no proven reserve but which has a plan now to investigate a 1.1 m to. Per annum based on small proven - a lot of probable and even resource estimates

incoming request to pay for all this further drilling I suspect and ongoing talk of 1.1 m tons - whilst they again try to improve the economics and reduce the risks of a plan based on the actual known reserve and its catagories

still talking to offtakes and financiers for last couple of years - offtakers need surety or at least a company with capacity to buy on market to deliver if production doesn’t go to plan - and financiers probably need more than estimates based on 6 months of probable reserves using a 1.1 m ton per annum plant requiring a 15 month construction and commissioning period and a company that would require working capital for that entire period over and above the capital costs to get the machine back up and running

more time and more capital needed imo