Ann: Boda-Kaiser Scoping Study, page-85

Hi anti - I've taken a look at the study and fundamentally their conclusions seem reasonable from the testwork completed. My comments are below:

• The Boda master composite grade into the LCT was 0.19% Cu, this was derived from drill hole samples with a weight average Cu grade of 0.21% Cu.
• Compare this to the head grade of Boda mill feed from the SS which is significantly lower (0.15% LOM for the preferred 20Mtpa scenario).
• The testwork indicated that the stability in the LCT was achieved after 3 cycles, recovering 87.5% Cu into concentrate for Boda vs 79.6% for Kaiser (due to the difference in CuS ratio in input feed)
• It was noted that there was a large difference in batch recoveries vs LCT. This is not unusual and suggests that a conventional continuous circuit would be required however this can begin to bottleneck the plant as the processing throughput increases (note the preferred scenario is the highest throughput scenario).
• The 14 Nov PR suggested that further testwork will be required, considering the operation of a small flotation pilot plant to confirm the results of the LCTs and mass balances into the CIL plant.
• The comminution test work indicated that the ores from both Boda and Kaiser are hard to very hard, which is likely why they have opted for HPGR. Hard ores require more energy to liberate Cu bearing minerals and therefore higher operating costs. For such a low-grade deposit controlling these costs will be critical.

My read on all this for what its worth are that this testwork seems to support a lower throughput scenario where the Cu feed grade can be better controlled. I think there are still significant questions remaining over whether the predicted recoveries are realistic in the 20Mtpa scenario feeding sub 0.17% Cu ores once the Kaiser feed has been exhausted. It would be good to have been provided a breakdown of the feed by source given the significant differences in processing performance and geochemistry.

Caving is probably the preferred long term approach for a low-grade porphyry deposit like this but the capital cost of establishing a cave are extremely high and generally contingent on unlocking FCF through a profitable OP operation first. For comparison the estimated capex on the Red Chris block cave (see PR 12 October 2021) was C$2.6bn. This may mine at some point in the future but if you're an investor looking for a quick return I'd suggest this is not your play.

GLTAH