Ann: Phase 3 Exploration Program to Commence at Makuutu, page-22

I guess the exploration over in the new tenement has that potential but IMO what's much more material and within IXR's control is improving recoveries in the process circuit. I recall biolantanidos achieving very good results comparable to IXR. Now that the overall JORC grade is lower the feed input PPM will be less. i.e. feed they may struggle to yield the same 1000tpa throughput at 2.5mtpa feed rate as previously indicated.

Obviously if they do delineate a high grade zonation over in the eastern most tenements this can be used to increase the overall feedgrade input. Secondly, they can appl a higher cut-off. From pure memory was it dropped to 200ppm? Essentially by delineating a larger resource overall, they can afford to have a higher cut-off if desired. A higher cut-off artificially increases your JORC grade.

i.e. instead of 200ppm for 250mT they can prove up say another 100mT and increase cut-off to say 300ppm. Result might bring them back to 250mT again but at an overall higher ppm than the 600ppm odd currently reported. In saying that, nothing will be changing between now and the SS, i'm more inferring over the next 12-18months.

Remembering only inferred resources can become input to the BFS which then grabs the economic part of the inferred resource to determine reserves. So a larger resource does give you better ability to raise the cut-off. In turn your feed grade is higher and the overall tpa you get out the back end of the plant is improved.

Aside from all that, the real value creation in the next 3-6months (aside from drilling over in the east and the SS and met testing improvements) will be if they are able to secure an MOU/offtake agreement or additionally project acquisition. This would change the optic substantially, as ultimately you now have much greater chance of finance and therefore production. Whilst i see these stage-gates as formalities IMO the offtake would be the next major step after SS. Extra % of project means you begin to take larger parts of the pie. Once the SS is out we can quantify what those would be in terms of NPV impacts.

Improving recoveries or proving more resources or higher grade resources out east are bonus IMO.

SF2TH