Ann: Outstanding Salazar RE Beneficiation Results - 5.08% TREO, page-6

Don't mean to pile in after 2IC, but two red flags stand out from this work:

1. REE flotation is typically targetting monazite minerals. As we all know monazite does not leach other than with intensive acid baking. Possibly they are benfeciating the non-leachable fraction? They need to expedite some leach testing on this concentrate to prove that isn't the case IMO.

2. Total recovery in this work was 69% (mag sep) x 68% (flotation) = 47% overall. If you assume $3.50/t mining cost (IXR DFS) then for your 1200 ppm resource, you are effectively paying 3.5 / 0.47 = $7.44 per tonne in mining for each unit recovered ore that makes it into leaching (just looking at contained ore value). Then you will inevitably have leaching losses, impurity removal losses etc etc, overall TREO recoveries could easily get to 30%, so the mining cost against in-ground ore value will be challenging.. assuming 0 strip ratio as well here..

I like the out of the box approach here, with further work they could prove something up that sets them apart from OD6, MRD and HRE, but more work required.