Ann: COO Appointment, page-16

From the geo report P35
Cost of Production
Operating costs are largely Fixed costs, and at a rate of 5,000t/month, Site and Admin costs are claimed by the Company to total US$25/tonne. Under the CMP contract, payment is made according to a formula incorporating freight cost to China, current 62% fines price, a port handling charge if used, bonuses for higher grade and penalties for impurities including moisture. This equated to a received price of US$31 when the quoted 62% fines iron ore price was US$45.

Increase Production
Permitting restrictions of 5,000 tonnes per month has delayed the expansion of the current plant, however a Chilean Permitting consultant that has been engaged by Freehill Investments has provided advice as to the steps that need to be undertaken to increase the permit restrictions to first 10,000 tonnes and then 100,000 tonnes per month
The submission could be prepared in a 90 day period at a cost of US$140,000, and a further 12 to 18 months is generally required for the expanded operating Licence to be granted