CHN Sale, page-338

Hey RocksRule,

Thank you, I worked through your numbers and they are correct for the overall resource. Appreciate you sharing.

The difference between my numbers and your numbers is that yours are for the overall resource, whereas I have calculated my numbers on the high grade section of the resource.

I note that you have used the Troy Ounce conversion of 31.1 g/t per ounce, which was more accurate than me where I just used 32 grams per tonne.

I can see that we have both used the announcement from 28 March 2023.

Within the 28 March 2023 announcement there is the overall resource numbers at the top of the announcement and then half way down the page they talk about the "Higher Grade Sulphide component of the resource".

120Mt @ 1.6g/t 3E, 0.20% Ni, 0.18% Cu, 0.017% Co.

OVERALL RESOURCE			Pd (g/t)	PT (g/t)	Au (g/t)	Ni (%)	Cu (%)	Co (%)
Global Resource Grade			0.7	0.15	0.03	0.16	0.09	0.015
Spot Prices			1,920	1,400	2,950	31,500	12,800	51,500
Value per tonne of ore			43	7	3	50	12	8	122
HIGH GRADE ZONE			Pd (g/t)	PT (g/t)	Au (g/t)	Ni (%)	Cu (%)	Co (%)
Global Resource Grade			1.2843	0.2676	0.0482	0.002	0.0018	0.00017
Spot Prices			1,920	1,400	2,950	31,500	12,800	51,500
Value per tonne of ore			79	12	5	63	23	9	191

Using your commodity prices, I get to a figure of $191 per tonne for the higher grade section and I can confirm that your $122 figure for the overall 560Mt of Resource is correct.

In summary $122 per tonne for the 560Mt overall resource and $191 per tonne for the 120Mt high grade section.

From the announcement on 28 March, they stated that:

This higher grade component affords the project significant optionality in development and remains the focus for ongoing studies evaluating the initial development phase.

So thankfully, they will be focusing on this high grade zone with their scoping study.

I share your concern about the economics of mining $120 per tonne ore at the current commodity prices. Although I think the high grade section will stack up very well financially.

Look forward to the scoping study.