tight range - something cooking, page-18

Hi Mahony, the quarterly makes interesting reading! The sections across the deposit, derived from the drill holes, raise some questions.

According to the scale accompanying the sections, the true width of the orebody is less than 25 metres, and the depth is shown as about 100 metres.

This presents something of a dilemma. If the orebody is to be mined by open pit, then there will clearly be a large amount of waste rock to be removed. If an underground mining approach is chosen, then there is an obvious cost penalty, which is likely to place Campoona at the upper end of world graphite producers, as far as cost is concerned. The likely downward trend in world graphite prices, due to the development of new, large deposits, will focus attention on this problem.

I have not yet seen any announcements of the preferred mining technique, or of the associated production costs. Today's report, and the information derived from the published sections, may well serve to prompt questions from AXE holders.

Cheers, Prime1