A few interesting bits in the annual report. Lots of good info...

A few interesting bits in the annual report. Lots of good info reviewing what they have achieved over the last year. If you are interested in the achievements take a look at page 51 - Significant Changes and page 88 - Subsequent events.

Most of the below is just cut and pasted straight from the annual report for those that haven’t and don’t plan on reading the annual report.

XRT Sorter Plant

“At the heart of the process were two high-tech TOMRA XRT ore-sorters, to which we added a third in the later stages of the financial year. TOMRAs 2 & 3 are now at nameplate capacity while our first TOMRA is undergoing upgrade and modification.”

“Whilst the preparation, receipt and installation of TOMRA 3 and replacement of TOMRA 1 led to downtime during Q4 the subsequent increases in concentrate outputs has far outweighed this lost time. “

“ Furthermore, the installation of a new conveyor belt for sorter product has expanded our output stockpile capacity, consequently reducing the need for excessive machinery traffic to sustain production levels.”

“Over the past year, the Sorter Plant has achieved an average yield of 10.52%, processing 405,000 tonnes of feed and producing 42,808 tonnes of tungsten-bearing sorter concentrate for further crushing and processing through the Gravity Plant”

Gravity Plant Upgrades

This year, significant enhancements were made to the Gravity Plant, boosting operational efficiency:

− First three ageing conveyors replaced with a more efficient model, enhancing feed throughput.

− Introduction of a cone crusher circuit, replacing the rolls crusher, improving the Plant’s reliability and performance.

− Reduced reliance on external crushing contractors by internally processing 40mm sorter product, enhancing self-sufficiency and offering cost savings.

− Revamped the Plant’s feeding area with new conveyors and ramps, optimising material handling.

− New Schenk Dewatering Screen and larger rolls crushers installed to double the Plant’s capacity.

− A second Mineral Jig, set for commissioning in Q3 2023, will further enhance capacity.

− Post-year end, eight concentrate shaking tables were added, increasing output, with two stacks of four shaking tables planned to optimise mineral separation processes.

“ An advanced crushing circuit has been ordered and will be installed early in 2024. This circuit will not only treat Mt Carbine ore but – as part of our processing hub strategy - will have the capacity to handle ores from other sources, including from planned underground mining operations at Mt Carbine.”

Laboratory Upgrades and Core Shed Relocation.

The laboratory’s operational scope at Mt Carbine has expanded significantly with the commencement of open cut operations. The Company has developed and implemented a quality assurance system with regular samples sent to external third-party laboratory, Australian Laboratory Services (ALS), for validation. With 20% in-house quality checks and 10% of production and grade samples sent to ALS, as part of the Company’s quality assurance program, the technical team ensures that the calibration of the laboratory equipment is on point.

Previously the on-site laboratory was manned by a single employee who was responsible for daily production samples to be sent weekly to ALS in Brisbane for assay, with a typical turnaround time of 4-5 weeks and between 80 to 150 samples being submitted per month. Now, EQR’s newly equipped laboratory can process and assay on average 80 samples per day with a 24-hour turnaround on results. This has led to a greater detail in grade and plant control for variations in material and processes enabling the operations team to make more informed and timely decisions during production.

EQR Corporate Office - Mareeba

The EQR Group now has a presence in Mareeba, with the opening of it’s Corporate Office in June 2023. Mareeba is located approximately 1 hour from Mt Carbine and together with other local communities, supply a large percentage of the Mt Carbine Mine’s daily operational requirements. The Corporate Office overseas the functions of finance, accounts payable/receivable, payroll and general administration functions for the Mt Carbine Mine Site and currenlty employs five full-time employees from the Mareeba and Atherton Tablelands region.

Future Programs (Drilling)

The recent geological work confirms there exists 4 major targets that need continued work and the listed four programs are still set to be completed by the Company:

1. Upgrade of the Iron Duke Inferred Resources into Indicated Resources - Iron Duke contains 5.8Mt @ 0.59% WO3.

2. Continue to extend the known veins along strike extents both Grid West and East.

3. Drill to the depth. Away from the South Wall Fault, the depth extent of the mineralisation remains open.

4. Evaluate and test the True Blue, Daisy, MacDonald’s and Red Cap Package Zones

Wolfram Camp, QLD

EQR has taken a significant step forward by being selected as the preferred tenderer for resource exploration activities encompassing the Wolfram Camp Mine and its surrounding areas (refer ASX Announcement ‘EQR Award Permit for Historic Wolfram Camp Mine’ dated 27 July 2023). This strategic move is aimed at evaluating the economic feasibility of re-commissioning this historical site. Covering a substantial 477km2 RA442 license area, which includes the Wolfram Camp Mine and the promising Bamford Hill advanced exploration target within the Herberton Tin-Tungsten field, this permit offers immense potential. With access to approximately 5 million tonnes of Low-Grade Stockpile and Tailings material containing valuable resources like Tungsten, Molybdenum, and Bismuth, EQR plans to conduct a comprehensive regional assessment, employing soil and geophysical programs to unlock the area’s hidden potential. This initiative aligns perfectly with EQR’s critical mineral hub growth strategy and dovetails with the Queensland Government’s Critical Minerals Strategy and Resources Industry Development Plan, aimed at revitalising former mines. Acquiring the Wolfram Camp permit not only expands EQR’s asset portfolio in the Herberton Tin-Tungsten field but also positions the Company to contribute significantly to the global supply chain for critical minerals. The rich historical legacy and promising geological attributes of the Wolfram Camp site make it a potential cornerstone in fulfilling this visionary objective.

–Non Annual report comments

Eastern Extension drilling

On the 28th of August 23 the “BROWNFIELD DISCOVERY AT RUBY AND EASTERN EXTENSION WITH DRILL TARGETS DEFINED” announcement was made. Kevin commented “The Company is focused on looking for further mineralisation close to the pit. Both the Eastern Extension and the Ruby Veins are in close proximity to the pit and would have the most impact for future mining. The scale of these surface results would indicate major mineralisation potential and we look forward to drilling the zones in the coming weeks.” It has now been 4 weeks and with the new lab mentioned in the annual report results hopefully have a quicker turn around than previously.

Funding

Conversion of convertible notes. Money in the bank, this is great news imo. With the Saloro deal expected to complete sooner rather than later there will be another 8 mil in the bank for EQR Aussies operations(1/3rd of the 25mil aud) And still the option for a further 10mil if needed from a second round of royalty sales. That combined with the ramp up of Mt carbine production should leave EQR in a pretty solid/safe financial position.

Saloro Debt

In the Making Money Matters interview when speaking about Saloro it was asked:

“Is one of the first things going to be get rid of that debt?”

Kevin's Answer

“Yeah its held by very solid banks in Spain, first tier banks. The interest rates are very low on that debt.It’s a very low interest rate. Oak Tree are standing behind the debt for 18 months and yeah our main initiative will be to pay down that debt. There’s some European EU funds that were looking at as well to see if they can help with some of that debt because they want tungsten desperately in Europe, so yeah we are working on a few initiatives there to be able to reduce that debt as quickly as possible.”

Could be some good news coming out of left field if they are granted any funds to help with the debt. I imagine the timeline for any funding won’t be quick.

Looking forward to the September numbers in the next week or so and hopefully Kevin, Tony and the team put out an update with their findings from their time in Spain currently in the not too distant future.

GLTAH.