Ann: Vanadium studies update, page-94

Thinking further about costs. One can get a direct idea from the costs of the large iron ore miners as there are many similarites between Speewah and the iron ore mines. The difference is is that extraction of V2O5 requires a chemical stage which but most other costs are directly comparable.

Now the large iron ore companies (BHP, RTZ) do not recover iron in Australia; they export iron ore. Why? It is simply much cheaper to have the Chinese produce iron metal than Australians produce iron metal (BHP tried it once and shut the plant down, far too costly in Oz). Now KRC could take a page out of the iron ore companies and simply export V2O5, Ti and Iron ore to China as a simple magnetic concentrate. This way its capex could be minimal as most work could be done under contract and a deal could be done with the Chinese either by direct sale of concentrate or a JV whereby the Chinese provide the capital and KRC and the Chinese partner share the profits. In my view this scenario is a practical and realistic way to develop Speewah with minimal risk to KRC. No need to bother about complex metallurgical studies. And it could happen in the short term.

We will need lateral thinking management to achieve this.

This is not investment advice. Please do your own research.