Drilling results and near term mining

MRF starts drilling tomorrow. Graphite veins look like shiny coal seams, so we might get some early photos of mineralised cores. Coal sells for around $100 per tonne but pure vein graphite is around $2,000 tonne, or in gold equivalent terms the veins assay at slightly above 1 ounce per tonne.

MRF has already rehabilitated a shallow mine decline that is the focus of mining recommencement. This decline sits on a open graphite vein. The Company has already employed and trained its first local miners, so near term production is dependent on verification of graphite vein extension, permitting for mining, and securing contracts for sale of graphite.

CAPEX is put at $4M to commence initial production at a rate of approximately 100 tonnes per week of vein graphite. This should generate $200,000 per week in revenue, and free cash flow of approximately $100,00 per week. Good luck to all longs