I do like this Project. I'm an investor, not an expert in this...

I do like this Project. I'm an investor, not an expert in this field but FWIW this came to mind to me from today's announcement.
Always good to see your thoughts JandJ

Maiden JORC – 'Indicated' (not just 'Inferred') on Phase 1 (just 1.2% ofProject Area)

Today's Maiden JORC – is on just "1.2% of the available anomaly area" i.e. the Phase 1 drilling. From that very small area,these are the tonnages of Indicated minerals in situ:

21.7Mt @1,419ppm Monazite Equivalent = 30,775 Tonnes of metals, in situ,comprising:

* 16,149 tonnes (~ 52%) heavy minerals

* 14,626 tonnes (~48%) rare earths

Phase 2 drilling area to be included in updated JORC shortly

Phase 2 drilling has been completed and apparently the material looked like more of the same. Assays are needed of course but pending them,today's JORC starter is promising. The Phase 2 area was a bit more twice that of Phase 1. Phase 2 intersections also were a bit wider, with basement being encountered a bit deeper in places as they drilled further north. Those factors combined should give a good lift.

We don't have all assays for this area but I'm hoping - ok, 'expecting'- to see a substantial increase in the next JORC figure, which I assume will follow within the next month or so after those assays have been received and integrated.The assays must be close.

Exploration Target

I'm also keen to see the Exploration Target assessed for the >100 sq.km area of the anomaly. Step out drilling has been done to the northern perimeter of the Project area and that will inform the Exploration Target,coupled with the Phase 1 and Phase 2 drilling results. A huge number seems likely. So what then of the economics?

PFS

A PFS is expected in H2 this year. This will be more than interesting, given that existing drilling results (pending remaining assay results) seem to correlate well to the anomaly and given excellent metallurgy results, summarised in today's announcement here:

"… The beneficiation test work has shown the greatest upgrade is by simple gravity separation, confirming the material is amenable to straightforward beneficiation by gravity processing

* The final concentrate assays returned 51.9% TREO,and contained mostly La, Ce, Pr and Nd, plus Heavy Rare Earths Dy and Tb, which collectively represents a very high-value saleable product.
* Direct cerium oxide (CeO2) recovery from gravity feed to REM concentrate is estimated to be 71.7%, with indications that >83% may be achievable...."I am sure that if the PFS comes in well, as I expect, it will provide enough confidence for very significant investment in this company, especially given the sector and its underpinnings (including geopolitics).

My 'Big Picture' thoughts pre the PFS
1. Tonnages available for mining will be huge.
2. Mining process should be straightforward, and as quick as any, being in sand, from surface, and apparently free of clay and significant rocks.
3. Mining cost should be at low end, accordingly. .
4. Beneficiation looks like being as simple as can be, being by gravity process(whether wet or dry). Lack of complexity implies quicker to build, easier to staff and better reliability.
5. Plant costs could be surprisingly low, assuming focussed around inexpensive, readily available and well-understood spirals.
6. Recovery of saleable minerals if in the order of 70%-80% should support strong economics, given the multiple product lines (roughly 50% rare earths;50% heavy minerals as noted above).
7. Project is capable of delivering product to market quickly, before competitors that have more challenging mining processes or jurisdictional risks.
8. Returns should be strong:
(a) For the rare earths – there's strong demand worldwide for monazite. It's a Critical Mineral because it's strategic and will remain so in the foreseeable future.
Shanghai Metal Exchange has live data showing prices recently in the region ofUSD5k -5.5k/tonne, although these prices can be 'under market', and achieved prices typically are higher. I recall Iluka getting USD7k ish, announced recently.
(b) Heavy Minerals demand also is strong. Using Monazite Equivalent basis implied in the Company's table as a rough pricing guide seems to be ar easonable basis for illustrating possible worth at this pre PFS stage
(c) Adding the heavy minerals and rare earths together for present purposes- i.e. to just this "1.2% of the Anomaly" case leads me to something like this, applying conservative values:

• 30,775 tonnes x 71.7% (lower value, say) recovery factor = 22,066 tonnes
• 22,066 tonnes @USD5,500 (conservative, I believe) = US$121 million conservative minerals value in situ.

If I had, say, used an 83% recovery that figure would have been circa US$140M; and an assumed price of US$6,000 would have added 9%. It doesn't matter too much though for current purposes though because I think the tonnages will grow materially, so sensitivities here or there on such issues will not be decisive.
9. As stated, since the above rough numbers are for just this 1.2% of the anomaly area, I am confident there will be meaningful additions to this initial resource.
10. Since the mining process should not be difficult, and beneficiation should be straightforward, and this is all to occur in the Tier 1 mining jurisdiction of Queensland, with a supporting landowner and proximate to infrastructure, and BTW in a company with a current MC of only $7.5M this is more than a good punt.