Ann: Trading Halt, page-30

I looked at the long section in todays presentation to see how the oxide and transitional material varies along strike. The cross section you have posted will be the best cross section with the least amount of oxide material (and I would do the same thing if I was TMT). However, the long section shows that the oxide material and transitional material goes a lot deeper for most of the resource than what is shown on the cross section you posted. Even on the cross section you posted it shows the fresh material is mostly deeper than 50m depth. Either way its only the massive, fresh mineralisation that the mass recoveries are very high, so TMT need to get into that ore as fast as possible. Having to process disseminated oxide material, however much ends up being in the ultimate open pit, is going to hurt cash flows.

With the base metal circuit TMT is suggesting they will add to the plant, they probably don't have an option about whether they add it or not. They will have to take out the base metals in order to make good quality V2O5 flake. If they can make money out of the base metals so much the better. The issue will be will the base metal circuit carry its cost of capital and how much capital does it add to the plant? We will have to wait and see the results of the DFS.