ann out initial drilling results sth aust, page-3

Sorry guys but hematite at those grades are not worth much particularly with the level of contaminants they have. If it was magnetite it would be a different story given magnetite can be easily upgraded.

Contaminants are too high also. P of <0.10 is normally acceptable with <0.05 attracting a price premium, there are large penalties for high P values. LML's P is considerably high. This would be the main concern for LML. Sure they may find areas of enrichment along the 5km+ BIF horizon, but it is now likely to have unacceptable levels of contaminants.

That would be why they released it after the market closed. They think it is bad news.