major ree , page-14

Hi all,

I think I owe you all an apology because I think I may have made a mistake. It's a good mistake but a mistake all the same so sorry.

I assumed the cost to wet process the alluvium was $4.30/T when this is actually the cut-off cost. This can be seen in the following quote:

"A cut-off “Toyota 2016 $ value” of US$4.30/ Tonne was used as a boundary between mineralised and non- mineralised “mineable” alluvium. This figure was based on information supplied by Crossland’s consultant for average costs of sand mining and wet plant processing to produce the first phase of Heavy Mineral Concentrate, to which a 70% recovery factor was applied. Therefore, US$4.30/T is the break-even operating cost assumed for alluvial mining and first pass wet-plant processing. In reality, very little material is included within the mineralised outline that does not exceed the cut-off by at least one multiple (i.e. US$8.60/T)."

It should be noted that the above quote says the majority of the resource would exceed the cut-off by at least one multiple. If this is the case the average of 0.3 percent would be more profitable again. By how much depends on the variation of the ore grade from the average being 0.3% .

What I believe can be gleamed is that over most of CUX's ore body CUX can be at least 100% profit can be made over the cut-off cost to wet process costs.

I need a little time to process how we can get some figures from this information but as soon I do I will post my thoughts.

Least it proves I'm not a mining engineer DDzx.

I get back to everyone as soon as I can.

Sorry once again.

Cheers