KLL Performance Rights - Major Red Flag, page-9

I cant help you understand grade. I guess you don't have a mining background???

Grade really is only one cog in the wheel. Some more cogs that are just as important include:
- volume
- input prices
- commodity price
- demand
- geographical location. How about a 1,500g/m3 potash deposit in Syria?
- distance to market
- other marketable minerals
- impurities
- surrounding rock type
- hippies

But grade can also really help. KLL is a good example of this. The PFS lacks a lot of information but I'd assume they will build ponds at 10 mile, ponds north of Sunshine, and ponds over at Aerodrome. However, they'll only build one processing plant which will probably be at 10 mile (close to the highway and initial production). So KLL will need to truck their product 50km from the northern ponds and about 200km from Aerodrome to the plant. Grade will certainly help with this issue.