Mine Life - potential options, page-3

Last year the mineral resource and ore reserve statement came out on the 25th September . . . so we will see the latest figures this coming week.

Peter Kerr has stated mining of the satellites with the possibility of blending is "Iron ore price sensitive".

Peter Kerr did not say that minining the satellites is dependant on a higher IO price.

Price sensitive can mean many things. For some time now there has been a steady reduction in the gap between higher grades such as lump and pellets as compared to lower grades. The Chinese blast furnace rate which caters better to lower grades / impurities is at a 3 year high at 93% . . . while Chinese electric arc furnaces which cater to higher grade suvh as lump, pellets and scrap are struggling at around a 50% utilization rate.

Peter Kerr has stated on a number of occassions that he is in possession of a wealth of geological data on Koolan gathered over many decades.

The wealth of data in possession of Peter Kerr extends beyond geological data and includes studies of various mine plans / extraction methods including underground both at Acacia satellite and main pit which has been modelled to 215 metres below sea level (currently we are at around 120 metres below sea level).

Last December the mine footprint on Koolan was extended by 143 hectares with a stated end date to mining of "approximately 2031".

The requirement to Infill drill the existing mineral resource to convert to ore reserve has been mentioned in previous reports . . . the timing of which may well be due to a critical path analysis based on the mine plan.

At this stage I am expecting no additions to the ore reserve . . . but it appears highly unlikely the mineral resource, either in parr or entirity, will remain untapped.

MGX is not in the habit of leaving anything behind. When they finally finished up at Tallering Peak, the report stated clearing out remaining "remnants"