Magnetic Resources refined feasibility looking at underground., page-2

I have a 'Buy' sentiment on MAU. Nobody including myself said the current pit proposals were constrained. The current deposits are open at depth......I'm talking about constraints to exploration development at surface due to boundary restrictions to which you confirmed "works run right to the lease boundary". Further, due to the physically limited mining lease areas a sequential development plan which the company has noted in it's presentations is required......that's not optimal but necessary. It still doesn't detract from the investment case. In a best case scenario, maximal development returns are not constrained by geographical boundary limitations. It's just the reason why AAR is in the process of taking over it's smaller neighbour (MXR). They too can/would undergo mine development with what they have yet the extra landholding gives them optionality not only in adjacent surface exploration but also importantly in developmental productivity in the mining/processing plan which decreases costs and enhances returns.

MAU are looking at maximising the ounces available with underground extensions. The aim of having those ounces either toll milled at one of the three neighbouring plants (2 very close) or selling the project as a whole to one of their neighbours. Every presentation highlights the underutilised mill capacity within proximity. Using those underutilised plants obviously negates the capital call for a processing plant and it uses milling infrastructure that isn't constrained by boundaries in optimising the mining/production plan. That's what they're setting MAU up for.