Resource Estimate Bingo, page-61

Good points Naz and this subject has been covered before but let’s make it clear for the newbies. How many other companies do a DFS/BFS when they have to supply diesel generators to supply electricity. IXR have the 132KV power lines running through the tenements. So it is relatively simple exercise to run some wires to a transformer then into the plant to connect up the electricity. The plant is fairly simple without the need to use rock crushers, floatation, drilling for explosives and blasting etc.... Heap leaching is a relatively simple process and very small capex required

One project out central NSW had to run electricity lines for approx 20km with costs nearing $80m.
Another case in point was Mineral Resources. Their Wodgina facility was to use a temporary diesel power station to add capacity to 17MW for about A$30m (US$21.9m). MRE also awarded a contract in 2019 to engineer, procure and construct a 56MW gas fired power station at Wodgina using 28 x QSV91 Cummins Gas Sets. I’m not sure whether this eventuated or not? At one point MRE Wodgina also stated 32 x 2MW gas gensets totalling 64MW (operating at an average of 50MW) plus addition of 10 inch gas pipeline.
HUGE CAPEX savings for IXR with opex cost savings on diesel.

If you look at the IXR company investor presentations they show this. There are roads and main roads running by the tenements. So no major road construction required and not transporting huge amounts of raw minerals to port. Just powdered carbonate. The road network goes straight to port in Kenya. How much road haulage is used by Kenya and Uganda? A lot. Is it likely to be relatively cheap and a reliable way to transport. Yes.

Another important point is who is going to pay for all this? IXR currently 51% ownership moving to 60% or more with BFS. So at this stage let’s say the 40% partners will be paying 40% of the costs. Potentially the offtake partner will be paying a certain amount into the costs and the remainder split 60/40 with IXR. Seriously how much are we up for? Another small CR could do it or just straight finance.