Ann: Exploration results update, page-7

Hi Pcs

I would suggest you contact the company with these questions. If Adam or Mark are in town they could provide you with better answers than my poor recall from the recent AGM.

At the meeting it seemed quite logical to me the way they were approaching the project but obviously a lot more questions needed to be asked.
I would be very surprised if Adam and the team haven't considered Qs like yours along with many others before making the current plans.

I did ask if one reason to go this route (DMS) was to generate cash flow quickly - basically yes.

As I understood it they are deferring processing a significant portion of the Cobalt only ore for a process which will give better recoveries than Dense Media separation. To that end they shipped 4 tons of 'ore' to Perth recently for tests.

The DMS stage 1 is "easy". 'Low' on capex and power plus the equipment is largely off the shelf modules that are readily available.

Power is a really major issue for SXEW and they may not be able to source enough for such a plant economically until Kamoa-K have and agree to support Kalongwe. Good relations so this is quite likely just not timely.

My notes show NZC used 35c per unit of power generated on site. Apparently Glencore pay 5c so there are large potential savings to be made connecting to the grid.
When and how much quota is available from the grid are other issues.

I have been wondering about SXEW plants that are ?proposed for the Kolwezi area could be available for toll treating Kalongwe Co rich ore. Such plants were mentioned at the meeting but not in this context from memory.