Ann: MXR: First Non-Core Asset Sale - Canegrass P, page-20

re: Ann: MXR: First Non-Core Asset Sale - Can... Hi Flaming,

There is a post by blythfan on the mxr threads post number 3994593, that discusses potential rail builds in the vicinity of canegrass. These of course will not happen for a couple of years at least, and things would have to be going well with the global economy to eventuate.

Look at CFE Cape Lambert for an example of the sale of a magnetite resource to china last year.

Price fetched was much lower than a nice quality haemetite body, the sale was for around $400 million. Cant remember the grades or size, will have to look up again myself. This was a lot closer to transport I believe.

Canegrass would require a lot more drilling to define the resource but the EM survey indicates that it is large and drills indicate Vanadium grades could be good, but this element would need to be in greater demand to drive investment.

From what I have read, magnetite is a lower impurity ore once processed, and the lower grades are less of an issue when compared with haemetite for this reason, and the fact that you can separate the ore magnetically, however the big drawback is the massive expense required to crush the ore which is very hard compared to haemetite.

Chinese ore is mostly magnetite, which is one reason why they mine sub 30% grades in china. These ores in china are more expensive to process in china than buying haemetite from australia or brazil at the moment at spot prices I have read.

I must say this move that these companies have pulled is desperate, but MXR is in a desperate state.

no-one wanted canegrass now as these days no-one has cash to pay for stuff that 'might' be worth something in a few years time. It's a bottom drawer tenement that was bought pretty cheaply so I'm not too unhappy about that.