Ann: Noosa Investor Presentation, page-18

Below is from Morgans Noosa conference summary sheet. The blue comment is from Kyle Williams the Morgans Resource analysts.

EQ Resources (ASX:EQR) operates the Mt Carbine tungsten mine, North Queensland, a 55 minute drive from Port Douglas. For the past 3 years EQR has been processing a 12Mt low grade (0.075% WO ₃) stockpile in a 50/50JV with Europe-based Cronimet Group at a nominal rate of 1Mtpy. This has enabled EQR to optimise the efficiency of its TOMRA X-ray transmission (XRT) ore sorters and process plant. Cronimet is a metals trader and recycler, and purchases the tungsten concentrate on commercial terms to process at its Brazilian smelter. Mining has now re-commenced in EQR’s 100%-owned open pit, with a resource grade of 0.3% WO₃. Our expectation is that production will ramp up to 1Mtpy over the next 6 months, and that the JV with Cronimet, who have sourced and funded the plant and equipment for the operation to date, will be unwound. Tungsten is a critical and strategic metal, with 80% of production from China. My expectation is for profitable operation at the nominal 1Mtpy, and for drilling to increase the resource base, with Mt Carbine ultimately going underground.

What can I say. It looks like the first blasts are well above the resource grade of 0.3%, and recoveries are also high. That’s what understanding the orebody and three years of refining the processing plant can do for you. It’s just going to get bigger and better.