Ann: Clean TeQ Sunrise Definitive Feasibility Study completed, page-412

Hi sally
As to EPC issues if I was an investor, I would be wary of the possible Chinese company the you have alluded to in the possible financing and engineering. They do not have a good record in Aust with a major iron ore project their conglomerate runs and also a very major iron ore project I was on EPC for we got the 2000 man camp from they conglomerate anc it rquired major works in rectifying and bringing up to required Australian standards. Also with the FTA we have with the said country allows visas to allow their country men into Aust to do the engineering and also non licenced work. This could beva problem as to prior experience doing a large amount of FAT (factory acceptance testing) the quality of work is often questionable and severe lack of compliance to the Contract supplied standards and specifications. If not captured in FAT this turns into very expensive and schedule affecting work in Aust usually at clients expense. A lot of abitration with these Asian EPC's that do work in Aust is carried out in Singapore arbitration fourts and the Aust firms never usually get a good outcome.
The eng firm SNC is a good choice duevto their exposure to previos HPAL jobs and have extensive exposure already in Aust as well as back up from head offices in Canada.
Also possible project JV venture with the Asian EPC, that some including yourself have alluded to, as an investor I would have concerns about. This would mean at say at 20% that 20% of opex and capex would go to JV partner but if they were the EPC thhey would recoup their costs by the eng design and staff they would supply to project as well as mark up applied to procurements. They would also be entitled to 20% of production meaning only 80% of profits would be attributable to CLQ SH's.

Now getting away from that the processing tech that CLQ is going to use will work, all plants work at some rate. It is what is the rate and how much it costs to get to a viable rate if after commissioning it is too low. As I said the other day Tim K and others spent a lot of time after Goro commissioning to redesign and implement improvements to refinery, the HPAL circuit worked a treat. They were lucky there in the metallurgist and crews on HPAL had extensive clave experience and knowlegde gained from Cawse, Bulong, Ravo and Murrin. A lot of this experience is gone now due to deaths, retirement and moving to new industries.
I did consider coming in if price hit 0.70c but thought I would still need to know some more info on EPC, possible JV's possible finance conditions.