Ann: Maiden JORC Mineral Resource - Noombenberry Project, page-37

Good announcement that goes hand in hand with my views in this post been, and the bit in italics below - Post #: 52856117

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""""""RS infill program will define IMO the area they will be mining from in due course. Whilst some of the results have been a mixed bag, as was ADN's results in some areas, LRS clearly have some very good areas where results have been outstanding. And I suspect it will be those areas that infill will target and it will become clearer from the infill how they will proceed with area identification, mining plans and before all that feasibility studies.

As everyone now knows, the key to a kaolin/halloysite deposit is three fold:1. Grain size - less than 45um is the key.
2 Brightness - over 80% is fantastic meaning the resource is 'whiteness'. 75% - 80% is good/ok
3. Low deleterious elements, especially iron, which in part is also associated with high brightness. If you have brightness above 80% the probability is you'll have low deleterious elements. Fe203 needs to be below 1%.

It is pretty obvious that LRS appears to have found something viable to mine and the feasibility studies IMO will also show that - the importance of understanding and been able to leverage from the work already done by ADN.

Long term hold, and I don't tend to comment on day to day share price movements.""""

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So, going to this announcement, it is a very good announcement. The key for us is the following resources in the Ann:



The picture below explains things.


First step was to get a MRE with sufficient resources, which LRS have done by identifying a decent Inferred resource, however you need resources in the Indicated and Measured Resource category, as that is the only thing you can do feasibility studies on that meet ASX requirements. A PFS is generally plus or minus 25%, whilst a DFS is plus or minus 10%, meaning both have some certainty around costs and capex, meaning both require the study to be done on Indicated and Measured resources.

A Scoping study however is plus or minus 50% - 100%, but the study can be done on predominantly Indicated Resources, with some Inferred Resources in the mix

A Measured and Indicated resource is about geological confidence by and large, and it is only when you have sufficient resource in this category that you start thinking about progressing studies. Looking at the X axis in the above pic, what you will note is that you run you parameters over the Indicated and Measured Resource (i.e. including environmental and economic) so as to move that resource in the Proven and Probable Reserve category, because at the end of the day all you mine is those Probable and Proven reserves - your payable loads are in those categories.

Therefore first port of call for LRS is going to be some infill drilling to get resources into the Indicated and Measured category, as well as identify new resources, which is why the Ann states some more drilling to be done very soon. From there and possibly concurrently they are thinking about high level studies, like a Scoping Study. The above graph ties in this statements in the Ann itself:


Will have a more detailed read as I go. My first observations.

All IMO