CLA chart, page-1750

Hi PG,

Using $90,000 per tonne of contained cobalt, we have $90,000 x 0.0011 = $99 p/t.

Copper $7,000 per tonne we have $7,000 x 0.0045 = $31.50

Zinc $3,150 per tonne we have $3,150 x 0.0045 = $14.17

So total there about $144 rock value. Now keep in mind in reality they will optimise the pits and UG mining to mine the higher grade zones first and luckily our resource is large enough to be able to pick and choose, so I expect our rock value of actual mined DOF to be higher that $150 in reality (assuming commodity prices hold up).

Regarding strip ratio, I wish our true width was 50m... Unfortunately I think were looking at more like 5m, hence the strip is going to be much higher. I think we could go to a strip of 10 - 15 at a maximum keeping cost reasonable but that width is what will be different from your post as others have eluded to.

My estimate would be mining costs of about $30 p/t. Thats on average, obviously as you can see with the likes of BLK there are going to be times where the strip ratio looks much better and times when it is worse. Were lucky that the DOF is so (almost boringly) consistent. I think an average cost of $30 p/t sounds about right because I'm told by a couple sources underground mining in Nambia can be done for slightly less than that so as soon as the strip ratio gets to the depth that open pit is cost prohibitive, you go underground.

Id like to see mining and processing costs combined being less than $100 p/t. Thats really that maximum cost I think I would be happy with as that is going to provide a good profit margin based on $150 p/t rock value in order to get funded. Obviously the lower the better I just don't want a scenario where we are reliant on current cobalt prices to be profitable, id like to see us generate a solid NPV in the scoping study based on assumed cobalt/copper/zinc prices all lower than current spot prices.

So many companies come out with a scoping study/feasiblity study showing a great NPV but so few actually get funded. There is a variety of reasons for that but I want to see a high internal rate of return (40%+) which essentially means a short payback period and therefore a more attractive/likely investment for off take/funding partners.