Ann: Opuwo Project Update and Board Changes, page-595

Ok back from running events in the boonies in philipines in changi airport in transit. seems like civilization again.!

Ratpack -right now lets not mix our words as I've said before at these Co prices this project is currently almost worthless-as the price rises - I'm hoping - so will the share price and I believe the cobalt price will rise or id have been a seller long ago.

Binwood is correct there have been screw ups by management recently and bad communications I am increasingly unimpressed- unlike last year.

IMO as Far as I can make out the main issue is becuase at these low prices the ASX is demanding only "indicated" resources not "inferred" be used in scoping studies (this was not the case before with a higher Co price).

Also at this cobalt price and the bearish sentiment and with ASX clamping down on all rules the risk is the independent ASX approved Jorc Geo may apply much more stringent rules now as to what is "economically viable to mine" (this has to be a consideration in any JORC calcs). Once it is handed to him BB and the others have no control of how he will classify or reclassify stuff and then they have to announce it. They have little say. If for example he only accepts indicated (and no inferred resources) and only the higher grade parts of that (say 0. 15% or over) then the resource could actually officially be recorded as similar or even smaller.(but of a much higher quality).

This is all IMO - not official from company (but they should be letting us know this stuff officially if possible) IMO what I think the company needs to do to bring in the rich new deposits of the anticline is to drill many more holes as per Jorc rules to pull it officially into the indicated not inferred class. Then it can be used in the JORC and the SS.

I also believe this may also apply to the shallow western end. where without more drilling there and getting better metalurgy results on the more oxidised surface ore (which BB says tests are underway ) I suspect that may also not be allowed to be brought into the scoping study to provide open pit start in theory under the more harsh new rules ASX are applying.

In my opinion -basing my calcs on each drill hole costing around AUD 70,000 each, to get this extra drilling needed all done (maybe 30-40 new holes??) this could cost the company around AUD 2.5-3 million more in drilling and met testing. However then we would have the known perameters of the deal and resource and it wpould then IMO be far more sellable to a buyers (who believe cobalt shortage is coming) then.

The management call right now as they announced is obviously not to spend that much drilling in this low cobalt environment and just to pull in their horns and wait for cobalt price to rise. Rather than sailing the ship onto the rocks of illiquidity and having to risk going broke or struggle to raise capital and dilute at these low prices if cobalt takes longer to turn.

This is a smart call on one hand which I agree with- annoying but sensible- It gives them more time to wait for market to turn and to try to bring in a new partner to fund and help with the technical development.

However and these are my two worries.

1) How much are they really pulling in their horns and saving?. are they all still taking big fat consultancy fees as well as salaries and their options while they wait? If so then they will just be semi funding their lifestyles while waiting - and using up the cash anyway. We shareholders (owners) need to be shown a budget of what non essential costs have been cut and also some forecast of what the expected budget is.

2) These guys have IMO become woefully inadequate recently at comunicating the real details (good or bad) to us the owners offically. This was not the case before IMO and to me it a problem that will need to be resolved. It is after all only fair to tell us shareholders and the market how it really is and let us make up our minds.otherwise people just imagine the very worst -as is happening now.

Now is the time to do it as the price has collapsed to cash and shell co price - the huge asset is being valued at almost zero. (which it is currently worth) but it also should be valued as a time premium call on the cobalt price, or a potential saleable asset to the big boys who want a resource to develop to be ready for 2022 on etc..


I mean In the press we hear that Bezos and Bill gates are now throwing billions into just checking the earths surfaces for potential new cobalt supplies - the EU has just put a 40 billion euro fund together to also try to locate new cobalt resources-all Japanese automakers have pooled their money and put a fund to locate non DRC reources of Cobalt and if the Chinese are investing over a Billion to fund very expensive deep water recovery trials of cobalt nodules in the pacific. -why is no one yet talking to CLA???. We have a huge new strategic global resource which IMO with some more funding and expertise this thing can be made to work.

Why are they not talking to US? To me Management and the consultants are simply not promoting it/marketing efficiently globally - most people outside Oz or the coblt junior market have ever heard of CLA nor cobalt in Nambia -IMO The directors seem to be concentrating too much on other projects.

Thats all just my views guys. -ok got to go catch a plane back to Phuket.