ABSOLUTELY COMPELLING ECONOMICS, page-657

Bryan has said last time that HIO will decide to drill for more at its discretion. My understanding is:


1. It does not need to inform shareholders about its drilling so that pe
ople don't have to wait for drilling results. No pressure for management.

2. Management may decide to drill more at other areas to at least have a rough idea of the potential of this WHOLE deposit. If you look at the image of the deposit the defined resource so far looks like it is only 1/4 of what it shows up on magnetic/goelogical survey. We dont want a JV partner coming on the basis of around 500mil-550mil tons resource to be later found out that the whole project resource is a 1.5bil-2bil tons monster. This is what happened to GXY selling 1/2 of its large swath of lithium deposit tenement to POSCO to be later discovered by POSCO that it hit a big jackpot with much much bigger resource plus highest lithium brine grade in the world.

The deal between Baosteel, POSCO, AMCI and MinRes on the $3bil iron ore project of low grade Fe58% will no doubt put a spotlight on HIO's Hawsons project with far more superior economics metrics and it makes sense we should know better how much potential resource laying underneath Hawsons's ground.