Ann: Exploration update, page-10

Hi Cliff,

"I’ve compared this to many other deposits and these results fall with the bottom quartile."
I would be interested to see your comparisons. Can you post it here?

"As I suspect you know.4% average head grade simply isn’t enough over such a scattered area. I’ve compared this to many other deposits and these results fall with the bottom quartile.DYOR. Cheers"
I believe we agree that the grades are low compared to other graphite mines. However, there are two points we should also take into account to get the full picture:

1)
The surface around Graphmade is very easily mineable. While a low head grade would not work in most jurisdictions and with most deposits, the fact that the Graphmada deposit is large flake in easily minable regolith and in a low-cost jurisdiction places them apart from others who have hard rock deposits in high cost jurisdictions i.e. Renascor.

So the combination of having a lot of large flake (premium pricing) PLUS easily minable regolith PLUS being in a low cost jurisdiction compensates to some extend. How much? I don't know.

2)
BSM always claims they start off with a very good product (interesting carbon mix). This does have an impact on costs in later stages (purification). But I don't have much to compare here.