100k @ $2.25, page-15

G'day steamy.

Yeah mate. So according to Mike, anything sub 57% Fe, (57 is the percentage of the material that is Iron) at the mine is considered to be waste. Even still we have a ore to waste ratio of 1:1 for the life of the mine with a 57% Fe cut-off. I'd be interested in what that ratio would be if the Fe content was lowered to 55% Fe. I reckon we could half the present CID waste figure.

In my opinion people rely too much on the out of ground Fe content of the ore. And far too little on the CaFe figure. The CaFe figure is what is fed into the furnace. Mills aren't as interested in the Fe grade compared to the CaFe grade, since for fines the product still hasn't been sintered. Mills are only interested in the value the product holds post sintering, and therefore the CaFe figure.

IF Pilbara hematite fines didn't have a high LOI figure to their magnetite counter-parts, Pilbara hematite fines on the most part wouldn't be viable! It's the post sintering Fe upgrade that they get, through losing crystallized water and carbonates that's the Pilbara hematites saviour.

BCI's LOI is about 3% higher than most of our competitors. That enables BCI to drop it's DSO ore content percentage by 2% in comparison. Why it's not 3% is it's the percentage of Fe, not the material as a whole.

So in other words, 55% Fe for BCI, is infact 57% Fe for most of our competitors. Which is why I reckon we probably do have a buyer for the grades down to 55% Fe. I'm not sure why this hasn't been spoken about by management if this is infact the case. Maybe we don't have a buyer, or my analysis of the situation is completely wrong. But my hunch is we probably do have a buyer as Mike suggests in that audio provided.

Bye mate