Hi WestcottThey are currently conducting metallurgical tests and...

Hi Westcott

They are currently conducting metallurgical tests and this data, together with past and future assays, will be used in the decision making process of how to best mine Railway.

Bear in mind that management will need to seek professional advice on how to attack the Railway deposit. I'm sure they will draft up alternatives which should line up with various scenarios. Bear in mind that the predominant factors will hinge on cut-off grades and impurities.

Here are a few scenarios:

1. Mine gate sales - Rio needs 60%+ Fe for blending and they work out that a cut-off grade of 57% Fe is safe.

2. Sell as DSO - BHP allows UMC use of its rail network...lol In this case UMC decides that they can achieve additional tonnage by lowering the cut-off grade to say 53% Fe.

Please don't quote me on those cut-off grades as they are only used for the purpose of explaining the various scenarios.