Capex & Opex, page-58

Hello Hrdwrk. To answer your comments, and I can understand where you are coming from. The stripping ratio is 0.4 so there will be costs inv0lved. Say $2 per ton on contract So it's a simple calculation. When I was a director of an iron ore company we looked at freight costs by both pipe line, truck and rail. Rail and pipe line costs about $1 million a km to build but pipe line running costs are much cheaper - look at Essars cost in India who use a pipeline as an example. Contract trucking was about 6 cents per tonne km. At that time. Maybe more now. You can do your own calculations. Royalties are 2.5 to 5 %% depending on the commodity. KRR have published the Opex costs per tonne which largely relate to processing. Multiply recoverires for each stage together to get the final recovery. I will not hold your hand. You can do your own calculations. I am satisfied mine are correct and are sufficient for my own investment decisions. At the end of the day, in my view, KRR's commerical success will all depend on the premium paid for a high quality product. Frankly I do not believe a payback period of a year unless there is a huge premium for high qalilitiy materials. Hence my question of Session who has a far better handle on market prices than I do.

Don't be mislead by the potential market for V in VRD batteries. Low temperature sodium sulfur batteries, using advanced electrolytes, look like being a whole lot cheaper. But you can do your own research in these matters.

I sold out most of my holdings in KRR (except for 100,000 shares) at a large loss so I put my money where my mouth is. But look each to his own. I make a lot of mistakes and might be completely wrong. Please do your own calculations, I have given the formulae previously.