Ann: Pedra Branca JORC Resource Upgrade, page-46

Paul12, in addition to your post regarding PB and likely production date, we will need to wait until towards the end of this calendar year to know how they will attack it. This was spoken about at the AGM.

IMO there is no doubt that PB will be our stage 2 mine and fits first quartile in terms of grade which suits the AVB model. PB west looks to be similar size to the stage 1 AN project and appears to be suitable for open pit, so quite easy to get into early prior to going underground on the larger PB east. Call it a stage within a stage. Cash flows from stage 1 AN and PB West could then assist funding capex on PB east. The market will wake up the this eventually, as we a see other companies struggle to get from development stage to producers due the large capex hurdles at this point in the cycle.

This will be one of many options management will be modelling to achieve the optimum result.

Getting these Jorc numbers out is more significant than many realise. Increase in tonnage and increase in grade as well as an increase in cut-off to 0.90% and remains open on strike and down plunge. By firming up confidence levels it also allows managements to talk about the project now. This was also discussed at the AGM.

Whilst we have recently seen markets take their haircut I am quite happy to sit and wait in our fully funded AVB during construction phase of stage 1 and wait for cu prices to recover before ramping up to possibly two stages of stage 2.