Ore sorters, concentrators and iron grade discussion, page-10

Core lithium is an example of a company where crushing fines are much higher than they advised and used in their DFS modelling. This has crashed the recovery rates which Core has then partly lifted by lower concentration grades. Clarity on the issue is complicated by Core not reporting full physical movements. An example in the Goldfields region is Atila Resources Bald Hill project (now owned by Mineral Resources).

By volume they were experiencing 20%+ crushing fines although the fines having a lower grade than the material presented to the DMS, the lithium units losses weren't that bad.

• While Altura processed 387,139t of material in Mar2019, only 291,988t made it into the DMS (By volume 24.6% was fines)
• While Altura processed 405,892t of material in Jun2019, only 324,681t made it into the DMS (By volume 20.0% was fines)

Particularly for the June 2019 quarter something else quirky was happening because the produced volume is less than the starting product, the grade differential and the recovery rate.

While there is a distinct chance TG6 will report met test work suggesting DMS + Flotation, that sort of recovery circuit avoids potentially 10% - 20%+ material being lost as crushing fines with no recoveries from that material.