Ann: Quarterly Activities Report, page-2

My emphasis below:


Drilling Continuing
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One diamond core (DC) and one reverse circulation (RC) drill rig are continuing operations at the Project, with current drilling aimed at expanding the existing Mineral Resource.  Assays from holes in these areas are expected during the September Quarter, with the aim of producing an updated Mineral Resource early in the fourth Quarter of 2018.



Scoping Study

Flotation testwork conducted as part of the Scoping Study has achieved improvements in concentrate grade and metal recovery percentages, whilst successive iterations of the leaching testwork have had the effect of significantly reducing reagent and power requirements (and therefore the expected operating costs), owing to a higher concentrate feed into the process, and utilising a reduction in required leaching intensity. Opportunities for further metallurgical process improvements have also been identified, which are expected to allow further beneficial iterations to reagent and power requirements, and therefore operating cost estimates.

To fully evaluate these opportunities, further metallurgical test work is currently being performed by SGS Perth.  Upon completion of this additional metallurgical test work, the process mass balance model will be updated, which will form the basis of plant sizing and capital and operating cost estimates across both the concentrate and refinery processes for inclusion in the Scoping Study, which is now expected to be completed early in Q4, CY2018.

Significant progress has been made on modelling mine design options for the Opuwo Cobalt Project with a number of options being evaluated.

Based on the preliminary results of the mining studies, it is expected that the Indicated portion of the Mineral Resource will be mined using a combination of open pit and underground methods (open stoping), and that the Inferred portion of the Mineral Resource will be mined using underground methods (open stoping) only.

Significant progress has been made on a number of other projects aspects including:
• conceptual tailings disposal study has been completed.
• environmental screening study has been completed, with baseline monitoring commenced.
• high-level study on power and water availability has been completed.