It is my understanding from previous work that there was an area...

It is my understanding from previous work that there was an area of higher grade material in a pit that is easy to access. I recall a photo in a previous announcement and mention of it in the resource announcement.

I believe that it was identified as a likely development scenario after the project was acquired and iron prices began their rise. When the project was announced as a purchase agreement the Fe price was in the $50 range. Over the next 12 months the price rose to over $200 per tonne.

Unfortunately it coincided with the post COVID boom which meant that rail, port and shipping prices went parabolic, and it was shelved.

The DSO operation was based on producing direct shipping ore with limited costs. The higher grade material was targeted to require light crushing to produce a 62+% product for direct sale.

The mining costs should be at the low end of the numbers quoted in the scoping study.

The crushing costs of the high grade ore will be minimal compared to the beneficiation costs associated with upgrading the ROM ore to 68%.

Dano set out a Capex outline of $20 million which had contract mine, rented screening and crushing equipment and most probably mainly contract labour initially. I recall that there was talk of up to 4 million tonnes potentially of this material.

So guessing that your mining costs should be on the low end of $14 to $29, and crushing costs should be no more than $10 - 12 tonne at the most. Therefore they could be able to get a DSO material out the mine gate for $30-40, so you should be able to make money.

The scoping study indicates that port, rail and shipping costs have come back to some form of normality, and a local buyer, if possible, would cut their transport costs further.

So on the rough back of the envelope calculation, and without re-reading a lot of previous data, it looks as though that it may be a more than viable operation, if indeed there is the ore available to support such an operation.

They have undertaken their own exploration programmes, so will wait to see what they come up with but it should be viable at projected FE price premuims for higher grade, low impurity ores.

The recent Scoping Study was a specific study on a DRI scenario, and has nothing to do with DSO and assessment studies underway as previously advised.

I think everyone should sit back have a tipple of your fancy, and wait to see what information they release from the various activities they have announced that they have underway. Once the fuller picture is revealed then I believe that we will see that the market is jumping at shadows here.