IPO - QEM Limited, page-80

Yes you do make sense yuk---last ann from IRC on the Richmond project i think AXF/IRC want to focus on the upper oxide zone from the surface where the oil shale had been leached of the oil and enriched by vanadium, molybdenum, copper, nickel and other metals.


Initial development work will focus on the upper mineralised zone at Lilyvale as it:

- Is the highest grade based on the drilling to date with the mineralisation 4-5m from surface

- Can be mined simply by free dig open cut mining at very low strip ratios

- Is amenable to low cost removal of the coarse fraction via scrubbing, trommelling, screening, cycloning and flotation to produce a high grade intermediate feedstock grading ~1.5% - 2% V2O5. Metallurgical testwork continues at two research Laboratories in China to further assess the optimal upgrade ratios and recoveries. (see Note 6,7 below)

- Has been subject to extensive downstream processing testwork for metal extraction.

- Is close to road and rail infrastructure, ports and Asian markets

>>>IMHO IRC/AXF are just working for the lowest CAPEX operation that will attract a Major partner to fund a 20yr+ operation for the majority control while they get a free carry royalty

I don't see HUGE payday from the vanadium asset but at the same time we won't be having to spend 10's millions for pie in the sky project