Ann: Webinar - Mt Carbine Tungsten Project Update, page-6

A good update.

Some observations from the talk.
Kevin and Tony seemed to be VERY PLEASED with what they are seeing. As Kevin said, I don't understand why the price is at the current level, but he then said, but I know alot more than the general public.
- significant increase in the resource with more to come, with BFS of $307m only representing 20% of KNOWN RESOURCE.
- by doubling the plant capacity from 2025 they have shorten the life from 16 years to 10 years, but allows scope to add 80% of resource into reserves which will extend the years. Tony thinks this is a multi-generational deposit.
- by doubling the plant they have lower the opex to being one of the lowest cost producers, which means they can keep working during period of lower prices (plus quarry revenue).
- Mt Carbine has been known as a lower grade deposit, however the drilling results are showing that's not the case with grades well above 1% still open.
- A new crushing plant will double capacity from Jan/Feb and work 24 hours.
- Infilling drilling keeps confirming the previous results. De-risking.
- Processing plant with new shaker tables and established team, means this has also been de-risked as they have been processing the LGS.
- Planning on 3 months of production to get cashflow running and then they will look to expand the drilling program as deposit is open to the north and west (width and depth). Some of the best drilling results still open.
- low strip ratio helps with the economics.
- grade control continues to be met.
- Tony said nothing to slow us down as most of the risks have been removed.
- Masan will refine all they can produce and Cronimet will sell it.
- Great partner in Goldings who have worked proactively with Kevin and team.
- No labour shortages and seen as a preferred place to work. Not all mines can say that.
- 70,000 tonnes of resource in the underground. This compares with 16,600 tonnes in open pit BFS. This suggests the underground value is likely to be a number of times the pit (currently not in BFS value).
- When they get cash, they are going to expand this deposit to show the true size of it. To date they haven't done this as they didn't want to dilute shareholders. It also suggests no capital raise (unlike one poster suggested a few months ago).
- Masan has tried every piece of equipment. They are also learning from them.
- We are Masan's preferred working partner (the team must be doing things right).

There is more in the video.

In summary, there is more value to come, they are proving and checking every step of the process and de-risking. The market will pay attention when the cash hits the can which isn't too far away.

When that happens the SP won't be sitting in single figures.

Merry Christmas!