Ann: MRG HMS - Corridor Central Aircore Drilling Update, page-26

First basewas to see if it's mineralised, it clearly is with these pics. It does needconfirmation of the HM breakdown though.

People are going to write all sorts of stuff regarding the initial lab results.But here are a few of my quick thoughts (I'm not here to arguewith people, they are just my thoughts so don't lose your minds).

Zircon / Rutile
% breakdown of the Zircon / Rutile against the total HM. (Ifthat number totals: 10%+ = good. 15%+ = pretty good. 20%+ = realgood).

Ilmenite

It's goingto be a decent % of the overall HM (it would be if you are pulling 5%+ HM numbers), but the higher the TiO2 content(quality) the better. (If the company provides this information from this labresult).

A number between 49-51% = good (sulphate ilmenite market - China).
51-53%+ TiO2 = pretty good.
54-56% = real good.
56%+ = sweet. (U.S. chloride market).
(Remember it's the quality of the ilmenite you are looking for, not the % quantity ofthe HM breakdown - that's important).

Slimes (%)
It's hard to just say a % number, because many things are at play (includingthe type of slimes), but above 20% gets high, but manageable. Above 30%, you'vegot work to do. A number with single digits is ideal. (that's pretty brief on a complex subject).

Grain Size

This mayalready be known, I'm not sure. Pretty much the coarser the better, easier to separate, run the plant harder, but this is where 'slimes' crosses over. You don't want acase of small grain size and high slimes. Think about it, you are trying toremove sand out of mud, the finer the sand the harder you have to work.

Zircon Quality
May not be known in this round. But a quality above 65% and you are in thepremium market and that commands the $1500/t that you see the likes ofIluka, Tronox and Rio selling into. Below that is okay and plenty of punterswill take it, but lesser dollars.


Sand Market (in general)
Trade tensions are hurting and world GDP numbers are rocky, but sales of bothTiO2 products and Zircon appear solid. If you read the quarterlies of allthe miners, you will see that no one is really holding supplies, which is areal positive and why pricing hasn't headed down.

Good luck.

P