kdr's use of metal equivalents, page-4

Hey Martie - interesting and thanks for sharing. Obviously an attempt by the JORC committee to ensure investors are comparing apples with apples.

Be interested to see what feedback they get from mining industry participants. From the ED wording, it looks like the intention is to phase out 'metal equivalent' calcs for explorers. See below; will need 'metallurgical recovery information' to calc equivalent.

'Estimates of metallurgical recoveries for each metal are particularly important to calculate meaningful metal equivalents. For many projects at the Exploration Results stage, metallurgical recovery information may not be available or able to be estimated with reasonable confidence. In such cases reporting on the basis of metal equivalents is not appropriate.'

By the way, this is an Exposure Draft so KDR has been following industry standards to date. From the latest PEX results, where the quoted a copper equivalent for Mallee Bull:

'These results are exploration results only and no allowance is made for recovery losses that may occur should mining eventually result, nor metallurgical flowsheet considerations. '

Interesting trading at the mo with 12m traded over the last few days.