Ann: UCL: Sandpiper Phosphate Resource Upgrade , page-23

re: Ann: UCL: Sandpiper Phosphate Resource Up... Cheers temple. I rang ucl today as I hold them hence my interest in Namibia. I was interested in finding out more about JV intentions for producing value added products and also about Gecko Namibia.

Firstly the JV's long term plan is indeed to develop value added products after establishing RP production soundly which will likely take around 2 years. This would fit in well with the technology development pathway at JCD with the dry kiln process. The process works with significant environmental advantages but they are currently working on building a model plant to demonstrate on a semi commercial scale - my guess is it would take a couple of years to get through that and into full commercialisation of the technology.

On the Gecko Namibia issue, the JV has been having talks with them. Gecko were originally expecting to be part competitor on the RP front as they hold similar offshore tenements however they have proven to be too low grade which means the JV has the field unopposed there. Discussions are along the lines of a further JV with Gecko where we would supply RP to the plants and share in the profit of the value added produce. Sensible approach but a long way to go. Gecko are probably 5 years away from production so now is not the time to be doing deals (I imagine especially so if the JDC technology is the bomb and we don't end even needing gecko).More likely in around 3 years time when RP production will be well set up and good future plans could be made. The important thing is the connections are in place and friendly.

The conclusion I drew was that the JV is confident in the future capacity for value adding at sandpiper.

Finally the JV are working full steam at the moment and is on good schedule. There will be an announcement tomorrow (i was talking with them aftermarket today) that the trial material recovery system has now been installed on the charter ship and has been mobilised to sail to Namibia. It will be recovering 300plus tonnes of representative feed grade material. That will take a couple of weeks to collect then will be sent from Walvis Bay to the pilot beneficiation plant they've established in Johannesburg for processing. They will produce an initial concentrate for the dfs process and also sufficient samples to go to off take candidates who have expressed interest so far in the marketing process.

That's about the extent of what I have to contribute at this point. Thanks for indulging me. :)