race to the finish line, page-15

Borisdog,

With respect I think you may have misunderstood the Head Grade of material needed to be processed in a CUX plant.

Through simple in field processing which at one stage was included by management in the cost of mining ($1.50-$$2.50/T of Alluvium). The alluvium can be processed into a new grade of the resource at extremely low cost. The process can be increase the Head Grade from about 300 PPM to 35% TREO and the company is aiming at 50%. This I suspect is because there is no rock crushing required because it has already been done by nature by erosion.

The grade of the material that can be presented for chemical processing is substantially higher than the other companies you stated and I suggest at a substantially lower cost. I think the recovery rate is about 70% from memory.

I think this is a problem with CUX's share price is that people don't appreciate that the TREO's in the CUX resource is in an alluvium fan and do there calculations on the Grade of TREO in the alluvium. They don't take into account the cost or ease of increasing the percentage TREO from the alluvium to the first stage of concentrate, which can be done in field very cheaply. This increases the percentages of TREO to greater than 35%.

A plant to process CUX's resources will be substantially smaller than the companies mentioned. Consider a plant for a resource with a head grade of 1%. It will need to process between 35 and 50 times more material than a plant dealing with CUX's in field processed material.

This is the cause of the problem CUX had in obtaining the JORC estimate because they presented in field concentrated samples that had such high concentrations of TREO the labs had to develope new means of determining the resource. So the process of in field concentration has been proved and tested, probably too well.

Cheers

Cheers