hallo hallo, page-14

Hi Caldazar,

A very good question and thanks for asking it. The long answer is a bit boring and tedious I'm afraid so I've included a short answer too.

LONG ANSWER

The "20-25MT" is the projected size of the two bodies of magnetite mineralisation, "Main Zone" and "No 2 Zone". They are not pure magnetite but contain numerous other minerals as well. I did my own modeling and calculated their combined mass to be 25.92MT, in close agreement with the projections. In addition, I calculated the size of some of the "Stanley River" mineralisation as 7.2MT. I discounted most of the Stanley River mineralisation as drilling there is still at a quite early stage.

This gave me a total mineralisation mass of 33.12MT. It's composition is variable but the average is between 30% and 45% magnetite. I didn't use statistically accurate methods to work out the average so I took the conservative approach and used the lower figure of 30%.

30% of 33.12MT is 9.936MT and I rounded it out to 10MT.

SHORT ANSWER

"20-25MT" is good stuff that gets dug out of the ground to be milled and refined. "10 MT" is refined magnetite.