Ann: Quarterly Activities Report, page-117

Good morning Fjord, you only need to read the Maiden ore reserve for the inland strands to work that out.

We have already discussed the company's low cash balance and the commentary around the QTR report when MRC management have been prudent with funds that have been spent, I still form the view the company would have raised fund to bring online the inland strands upgrades if we didn't have the recent selling pressure by the former CEO or the company shipped its ilmenite during the previous QTR as forecast.

https://www.mineralcommodities.com/wp-content/uploads/2022/02/MRC-Maiden-Ore-Reserve-Inland-Strandline-18-February-2022.pdf

How long will it take MRC to produce 60k tonnes of ilmenite, I would say around 8-9 months.



Once the upgrades are completed to the production facility, MRC will be able to process 1.2mil tonnes of the higher grade inland strands mineralisation, the company already has 400k tonnes of stockpile ready to be processed with a grade of 33.6% THM and it contains 26.9% Ilmenite (shown in yellow) (4 months production)

After 4 months of operation, MRC should produce around 36k tonnes of ilmenite. 9k tonnes per month.

As I explained to Nevilleb yesterday, Tormin and the Northern beaches were producing around 3700 tonnes per month, you need to divide this by half due to 50% of the plant's capacity being set aside for the inland strands. 1850 tonnes per month.

After the first 4 months (to deplete the stockpiles) MRC would produce around 43,000 tonnes of ilumenite, only 17k tonnes short of your figure.

MRC will then need to commence mining of the Inland strands, the rate of processing is 100k tonnes per month with a grade of 34.4% THM and the ilmenite is 9.1%.
(100k x 34.4%) x 9.1% = 3100 tonnes per month plus the beaches monthly ilmenite 1850 tonnes = 4950 tonnes per month Beach and Inland production 17,000 short fall divided by 4950 per month = 3.4 months.
The total produce 60k tonnes of ilmenite is under 8 months. the value of the shipment will be worthUS $7.8-11Mil.

When you consider the grade of zircon (4.1%) and rutile (1.7%) (5.8% combined) are significantly higher in the inland strands, these HM attract a higher premium to the ilmenite and do not require bulk shipping, the 400k stockpiles should contain (400k x 33.6% THM) x 5.8% = 7795 tonnes x US$870 per tonne = US$6.781mil and the Garnet production just from the inland strands will be around 24000k valued at US$3.2mil.

The calculation above doesn't take into consideration any losses, but should be indicative MRC will have significant revenues just from the Zircon and Rutile production to cover all of the plants operating costs without any bulk shipments from the ilmenite or garnet,

Anyway, now MRC has completed the shipment of ilmenite in July, hopefully this provides MRC will with the additional cash they require to get the inland strands into production, which will significantly boost the company's profitability.