Ann: Exploration Update, page-43

@1%aday , I posted this a while ago on poor quality Chinese deposits and why the Chinese are looking for better supply from international jurisdictions like Australia. In terms of this post, you are spot on that the quality of a resource is about brightness, particle size and low impurities. The key to koalin is brightness and particle size as you recognise as well, especially fine grained particle size, noting high brightness generally means low iron/impurities. Poorer quality (Chinese) deposits have higher processing costs, as well as processing itself creates issues for them, noting poorer quality deposits cannot target the higher end markets where prices received are better - refer extra info in Post #: 43093687

So key point is there are a number of factors that influence what markets you can target - simply not brightness alone, but also particle size and liberation (and by liberation here talking about recovery rates depending on what market you are seeking to target). That is if liberation is poor the loss might be too high in recovery rate so may decide to target lower end use markets to maximise profit etc).

In this ADN Samso interview the concept above is better explained - go to 8:15 - 10:35 That gives a better explanation of these variables etc etc



The key for LRS when they drill further down - say 10 metres to 30 metres - is hitting resource with lower Fe203 impurity levels especially IMO but still having good particle size ( at or below 45 um especially) and decent brightness (which I suspect they will hit as well and if they do hit them well SP will look after itself here). Then the METs can show what they can produce, and that also aids the proposed process flowsheet itself etc etc.

Anyway, to sum up again some positive data already, especially Location D, is my point. Look forward to seeing how the drilling results pans here and best wishes for you all.

All IMO IMO IMO