KNL Update, page-23

Good Morning Wilma,

I wouldn't be surprised if KNL's resource upgrade was also a request by our potential lenders,

KNL certainly had enough contained graphite in the 2015
The highlights in the study showed the following

 62% of the Mineral Resource estimate is now M+I which totals 14.5 Mt at 9.8% TGC for 1.4 Mt of contained graphite
 46% of M + I Mineral Resource estimate classified as Measured
 The Mineral Resource supports the previously announced expanded production scenario which would involve producing 100,000tpa of concentrate over 20 years with no further exploration required


In the 2017 Resource upgrade we had the following



What I found very interesting (apart for the increased production from 40ktpa - 60ktpa) is that KNL mining life is only 18 years, what appears to have changed is the mine life is based purely on the Measured Resource, it does not take into consideration the indicated or inferred resource as previously used in the 2015 Study,

Using the 8% cut off grade with a planned production of 60ktpa the Measured and Indicated KNL mine life should be 33 years,
or if you use the Total resource we would have a mine life of 50 Years
It become a little crazy when you use the lower cut off grade of 5% with the 8.1mt of contained graphite, this is only based on 25% of our resource, giving us a 135 years mine life,

KNL certainly has plenty of room to expand well above our current planned 60,000 tpa production target as indicated in the earlier announcements.


I also wouldn't be surprised if KNL's RAP / mine design has already taken into consideration KNL's future expansion plans. the Waste rock dumps, Tailing Storage seem excessive for a 60ktpa production facility.