What does POS bring to the table.

The merger is a done deal. Even TB and all his mates could not stop the train wreck. So, what does POS bring to the table. All IMO and DYOR.

Personnel - Best HC crew, with the full Monty, the Good the Bad and the Ugly. No doubt with the SH’s having been feed bullsh!t all the way down to a SP of 0.4c, most are a bit pissed off. As far as the POS Managers and Directors, getting rid of them is the only part of the merger that POS SH’s can agree on.

Black Swan (BS) has 222kt of Nickel resource with 2.2 Mtpa concentrator capacity (on three separate circuits) and all associated infrastructure and approvals. The flotation circuit and additional costs for bringing the underground mine and open pit back to life are not a financial consideration for the restart. With the crushing mills in good condition the cost of upgrade and restart for BS will be dominated by whatever additional gold downstream processing is required. BS has gold prospectivity but most of the historical core samples were not tested for gold. HRZ desperately needs its own processing capacity to remain viable. It can’t rely on the Gold price to stay high to compensate for the fact it is tolling marginal deposits.

Lake Johnston (LJ) has 52kt of Nickel resource with 1.5Mtpa concentrator and associated infrastructure and approvals, including 200-person camp and airstrip. Camp and airstrip are currently being hired out to proximal exploration peers. A number of Lithium explorers including RIO have a strong interest in the Lake Johnston province with no other processing option other than the POS plant. MIN recently signed a deal to purchase LJ off POS for $15m to process their Lithium fines from Mt Marion. MIN wanted to change some details in the contract (after the fact) but POS management disagreed, and MIN forfeited a $1M upfront payment. LJ also has gold prospectivity and potential Lithium of its own.

Windarra is an old nickel mine and has 150kt of Nickel resource. Historical mining at Windarra was completed under the “Windarra State Agreement”. This stated that only Nickel was able to be extracted from the mine. Windarra is in a “gold hot spot” surrounded by regional players including Genesis, Regis, Goldfields Anglo, Magnetic, Brightstar and Focus. The Windarra State Agreement has recently been terminated allowing the mining of other commodities at Windarra. So not only does Windarra have a large unexplored gold footprint it has a number of old tailing dams with 180,000 oz Gold resource in the tailings and significant water storage. POS has already entered into an Agreement with Encore Minerals Pty Ltd to develop the gold and nickel tailings at the Windarra Tailings Project using Draslovka a.s.’s proprietary Glycine Leaching Technology (GLT) and other patented technology. The Encore deal on the tailing dams alone is worth about $10m revenue to POS.

Nickel- Until the Indonesian nation wakes up to the fact that they have been used by the Chinese to procure cheap Nickel and in the process have been stuffing up their own beautiful country, Nickel will not get above $US20k/t. So currently POS’s Nickel assets are worth zero. Nevertheless, POS has other intrinsic value that will more than pay its way.

HRZ has struck at the lowest of low times for POS and SH’s conceded that they are screwed. Until recent times I never held a lot of POS stock at any one time but at 0.3, 0.4 and even 0.5 cents I have invested into the merger concept. There is plenty of time to hang out with the POPE in the near future.

RED