Ann: Mt Kokeby Ground Work Commences, page-9

The REE transaction is going ahead first with a NOM to go out soon.

Mt Kokeby drilling and testing will be done to verify historic data. This is a massive massive win. Basically gets to de-risk the project. There is a non-JORC resource at Mt Kokeby at the Murray Deposit. Its in historical reports as well as the kaolin WA report. There if you are prepared to look for it. The drilling and metwork will be relatively cheap I believe. MT Kokeby is circa 1hr from perth and drilling can be done with Auger drilling. Basically get to take her out for an extensive test drive before deciding. Considering data comes from 1970s that seems prudent.

The ACTIVE rail and loading facility would come in handy for a DSO operation. Ppl talk about trucking but rail is a game changer. Looking at ADNs scoping study transportation costs were ridiculously high as they were using a trucking operation at 500tpa that is a stupdendous amount of trips and massively inefficient and expensive. Metalsearch have drawn a nice rail line in their figure, but dont refer to it anywhere in their announcements. Reason: that rail(light rail) has been out of commission for more than 10 yrs and has had parts of the rail line ripped up.

Transportation costs go
Cheap
Shipping

Rail



Trucking
Expensive

If they can prove up the historical data and rail to port for shipping it could cut a lot of costs. If it takes a couple of months to prove that up at no additional cost (other than works) its a no-brainer.