Today's trading, page-44

Heeman, you are on the money. The market doesn't yet get the flake pricing thing. Distribution is essential to a good (profitable) graphite mine. I see that TON are currently trying to predict the grade% they are going to get (and build their own hype). It's not the most important thing to focus on though. 5% grade with a 300+ micron flake size is massively better than 320m at 25% grade if that grade is all less than 75 microns. I think a large part of the reason is that most investors are used to dealing in other commodities mainly (gold, iron ore, coal, etc) where grade is key. In graphite, grade is still somewhat important, as the higher grade means lower processing costs, but as with my point above, there is no point having even 100% grade if all the flake sizing is under 75 microns.

I don't know what the JORC will be, but I do know that we don't need much. 14Mt is already too much graphite for what we have in mind. Let's say we build a 30,000 tpa mine at Epanko (the initial scoping study was for 20,000, so I've increased it by 50%), then we only need 300,000 t of graphite concentrate to have a 10 year mine life (which is what the financiers will probably want to see). That's only 2.8 mt of ore in the ground (at 10.5%). Whether we have enough left over for a 20 year, or 50 year, or 100 year mine is irrelevant to a financier who is repaid within the first few years, so management aren't going to waste money "over drilling" just for the sake of putting a bit more in the Measured and Indicated column rather than Inferred. In conjunction with the binding off-take, they only need a small portion of Epanko to have a JORC upgrade sufficient to satisfy financiers, so that's what they'll do.

Heeman, in a relatively short period of time, we'll have a bankable resource and feasibility study, along with our off-take. People will be able to see how much profitability there is, and it will be in stark contrast to a whole bunch of other wannabees. People will soon start to realise that a whole bunch of other graphite juniors are still struggling to get finance and progress their projects, and things like off-takes, and flake distributions, will start to be more prominent in investors minds, as opposed to the spin of "we are going to build a 50,000 tpa mine, and don't worry about how we are going to sell our sub-standard flake distribution, just trust us"