Patience vs LOM upgrade, page-5

Hi SeeOT and all,

A very good announcement yesterday and great to see a mine/ mill restarted ahead of schedule and under budget ... a rarity in the junior resource sector.

This is a tricky period and whilst I agree that the 'tweaking' should be routine as the ore body and mill are understood by the operators (due to being a restart) I would caution against over expectations in the coming months.

These things take time to ramp up and get humming. I would suggest that Q4 will still be in the ramp up phase and recovery rates/ process rates/ cash flow will likely be below steady-state rates that we can expect to see in 2018.

From my experience with BSM who had a large mill (Hellyer) in Tasmania and who tried to operate it under-capacity and on a campaign basis to process their smaller Fossey deposit, they had huge issues dialing the plant in and recovering all the payable metals.

The issue was that starting and stopping the mill continuously along with running small volumes of ore through a large plant, played havoc with the ability of the operators to dial in the plant and maximise the recovery %. A lot of payable metal ended up in the tailings stream.

I am sure the RVR team have this sorted. However, once the LOM extension is known (which I think is a high probability) and the calculations for the inclusion of lower grade halo ore (due to high commodity prices) are made, I would be keen to see the mine plan and processing rates increased to capacity levels to ensure the plant is running to its design specs and the optimal settings, once achieved, can be maintained.

Just looking at possible negatives, I know, and the above is by no means to suggest that I am unhappy with RVR at all.

Cheers
John