DFS what to expect, page-37

You do not seem to understand - the high cobalt is not where the high scandium is! If you chase the cobalt, the scandium head grade into the plant is only 50ppm. The dirt in your back yard is likely to be 20ppm Sc. The 600ppm scandium dirt is lower in nickel and cobalt than where the good cobalt resource is. So you either chase the nickel and cobalt, which makes sense, or chase the scandium as Platina are doing (a decision that seems to have cost the MD his job). At 50ppm Sc, most nickel-cobalt operations around the world have deemed that the scandium is not worth recovering, as there are significant capital and operating costs required to recover it and process it to a pure enough form to be saleable.

Water purification has nothing to do with the IRR for Sunrise. The platinum is at such low levels as to not be worth recovering. The resin-in-pulp extraction technology is trumped up old Russian technology that many companies like BHP have evaluated extensively for nickel-cobalt processing and all have rejected up until now, so it does not seem to provide a compelling lower operating cost scenario.

Yes there might be some upside on nickel price, but the PFS already used nickel prices well above current levels and well above medium term trend. The cobalt price in the DFS will be a lot higher than the PFS figure, but is so volatile that it would be difficult to know where to pitch it and still be credible. I am interested to see what price they will end up using.

This is a BANKABLE feasibility study. There is no potential upside, all is disclosed. It is the final document on which to raise the finance to build the plant. If the IRR in the DFS document is low 20s, this is what they will be financing on. SNC-Lavalin will hold them to a conservative reality, without the marketing hype. Particularly now with TSX listing and the much stricter NI 43-101 reporting requirements that their public documents must now meet.

As I said, just my feel for what the DFS will have in it.