Ann: Helikon 4 shaping up to materially extend Phase 1 life, page-40

The success of the Helikon 4 drilling program underlines an important requirement, and suggests a tantilising prospect.

Requirement
If the drilling program results in an update of Measure & Indicated Mineral Resource to extend the mine life from 14 to 20 years, then the project's business case is strengthened.

Why is the Business Case Strengthened?
The lease on the chemical plant site in KIZAD is 25 years. Securing resource to feed the P1 plant is an important requirement, both for LPD's financials, for its landlord, and for funders (who want to know that production can continue).

The on-going drilling program will only add to the life expectancy of the mine, and will lead to mineral resource being identified to use as a feed source into the P2 plant.

What is the Tantilising Prospect?
The drill results suggest that Helikon 4 may be simply an extension of Helikon 3.
"Simply" is understating the significance. If indeed Helikon 3 & 4 form a single supply resource, then the mine will be very large - perhaps 1 km in length. This amount of resource will keep concentrate flowing to P1 and P2 for many years into the future.