New project generation, page-9

18 months ago we sold Extension Hill to Fenix who inturn immediately sold it to Terra. According to the Terra website, Extension Hill is a tier 1 asset with an inferred magnetite resource of 341 Mt (an extract from Terra's website is pasted below).

The main reason that I can think as to why we sold Extension Hill is the cost of haulage to Geraldton Port, a road distance of 340km.

In comparison our Tallering Peak magnetite deposit is just 172km to port.

Using 6 cents per km per tonne . . . transport cost to port (round trip) alone equals:
$42 aud from Extension Hill
$21 aud from Tallering Peak

The following is from Terra website .

"Extension Hill has an inferred resource of 341 million tonnes with a DTR of 37.3%, and a concentrate grade of 65.2% iron. All Stage 1 project milestones, including state and federal approvals, have been completed. Offtake agreements with Baowu, the largest steel producer in the world, have been secured.

Road and rail contracts have been agreed, with the first shipment of ore expected in Q4 of 2023. Current production planning calls for 3M tonnes of direct shipping ore across 2024 and 2025, scaling up to 5M tonnes in 2026"