Seems almost criminal to be this cheap. The deeper drilling...

Seems almost criminal to be this cheap.

The deeper drilling almost confirmatory of greater depths of the clay profile.
The irony is the existing depth and grade is pretty outstanding in itself.

Nearology generally isn't a sure bet - but these type of weathered profile tend to be pretty uniform laterally. So i think it will be more akin than note when you consider the nearology is in some area less than 5m away.

I ran the previous REO results through my concentrate calculator and normalised against the same met results MEI got. Obviously, VMM will need to do their own, but as a yard stick it's an ok one to use.

The concentrate price per/t produced is slightly better than MEI, but the obvious current advantage is MEI's average grade much higher.


What we're looking for in the next results is higher grades on average overall.
At double the grade MEI can effectively get twice as many tonnes of REO out the backend which effectively double the revenue. That's despite forfeiting maybe 10% lower overall revenue based on the basket composition.

It shouldn't be a surprise that the composition of the REO is largely the same as it's all from the same system.

In short, would like to see some higher grades come through. If we can average 2000-2500ppm we'd have a pretty profitable operation even at today's price. Anything higher obviously makes us extremely comparable to MEI. Other REO plays have lower grade and different REo compositions. It's why you can just view on overall PPM grade. The composition and the recoveries make a substantive difference.

Obviously MEI will target the high grade zonations in their deposit as the first to input into studies. Probably 3500ppm+. So if we have that same success no reason the market caps shouldn't reflect that in the not so distant future.

2000ppm+ makes VMM profitable at todays prices. So that should be the target. A lower average jorc would mean prices need to increase, or they would need to go into downstream processing route for value add on the product.

SF2TH