for personal use only · last price capital: listin berl d andrej k exec rodn ... ny g. wills...

Issued

SharLast Price

Capital:

Listin

BERL

D

Andrej KExec

RodnNon-exe

Daniel ANon-exe

AnthoNon-exe

P

(Rum JMagnes

(Rum JP

(Rum JAu, Ag, Zn,

M(Ashb

(P

Marble Ba(P

d Capital

res: 299 Mln e: 3.4 cents $10.17 Mln

g Codes

ASX: KOR LIN: C6S.BE

Directors

K. Karpinski cutive Chairman

Director

ey H. Skeet ecutive Director

A. Smetana ecutive Director

ony G. Wills ecutive Director

Projects

Winchester Jungle, NT) sium carbonate

(MgCO3)

Geolsec Jungle, NT) Phosphate rock

(P2O5)

Batchelor Jungle, NT) Pb, Ni, Cu, Co,

Sc, Mn

Mt. Elephant burton, WA)

Au, Cu

Karratha Pilbara, WA)

Au, Co, Cu

ar/Nullagine Pilbara, WA)

Au, Co, Cu, Li

KOKOwww

20 PRPO BTEL (ACN

21 Mar

WINCSTUDKorab update(DSO) by GoFollowreasonestimaoperati

Assummainteshippinwhich estimacarboncosts aand prthis rep

This exsuch aeconomInclusio

The rethe mannounMarch project

As parsorter increas

The ouof magstored 80%. Twaste

This isCompaunderptarget i

ORABRAB H.korab.com

ROWSE STREEBOX 1958, WES(08) 9474 6166082 140 252

rch 2018

CHESTER DY RESULResources Lt

e of the pre-feoperation. Thlder Associating the curre

ns the Compantes of +/-30%ing costs.

mptions and ienance costs, ng costs, sellingenerated thtes were so

nate buyers. Ware provided frices, which wport.

xpanded studyas haulage, pmics of Winchon of addition

sults of the fearket on 7 ncement cont2018 contain

t supplying a d

rt of this curreto sort crush

se the proport

utput from thegnesite fines, on site. The e

The study revrock; however

s an update any confirms tpinning the prin the initial pu

B REHOUSEm.au

ET, WEST PERST PERTH, WA

FAX (08) 932

MAGNESLTS (EARNtd (“Korab”, o

easibility studyhis study was ces Pty Ltd, tnt update, thny believed it % and conse

nputs (miningequipment a

ng costs, sellihe NPV, grosourced from Whilst the aggfurther in this rwere quoted b

y which includport charges, hester quarry aal information

asibility study March 2018. inue to apply ned estimatesdirect shipping

nt update, thehed rock into ion of saleable

quarry woulddolomite, tal

estimated ratiovealed that ther any potentia

of the studythat, other tharoduction targublic report co

ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

ITE DIRECNINGS, NPor “Company”)y to develop Wcompleted by the Companyis is now a fwould be prud

equently a 30

g work ratesand consumabing prices, as ss earnings, appropriate

gregate estimareport (see Ta

by third parties

ded the estimainterest, debtassuming its d allowed estim

without inclusThe Compa

and have nots of capital (Cg ore.

e Company evmultiple stre

e product.

d consist of crlc, and wasteo of coarse saere may be al revenue from

results initiaan disclosed

get or the foreontinue to app

URCE

5, AUSTRALIA RALIA

CT SHIPPIPV, EBITD) (ASX: KOR)Winchester ma

the Companyy, URS, Batemfeasibility levedent to continu0% contingen

s, excavation bles costs, lowell as other

EBITDA, casconsultants,ates of all comable 8, and Ts are commer

ates of revenut repayment, development amation of earn

sion of the aboany confirms t materially chCAPEX) and

valuated the beams which w

rushed magnee rock (includaleable magnemarket for m

m sale of these

lly released telsewhere in ecast financialy and have no

ES LI

ING ORE FDA, CAPEX

is pleased toagnesite depoy using informman Tenova, el study; howeue using the ocy has been

and earthmoading, haulag

r input variablehflow, and cacontractors, mponents of oTable 5), the rcially sensitiv

ues and variouroyalties, oveas a direct shiings and net p

ove additionalthat all mat

hanged. The soperating co

benefits of utilwould reduce

esite rock withding polymetaesite rock to f

magnesite finee has not been

to the marketthis report, a

al information ot materially c

IMIT

FEASIBILIX, AND OPo provide the osit as a direcation collated and Devminever, for risk original accuran added to a

oving costs, ge, handling, es) underpinnapital and opand potentiaoperating cosspecific detail

ve and are no

us additional erheads, etc. ipping ore (DSpresent value

l factors were terial assumpstudy results

osts (OPEX) o

lising automatthe volume

h a waste streallic ores), whfines used in t

es, dolomite, tn included in t

t on 10 Marcll the materiaderived from

changed.

TED

PAGE 1

ITY PEX)

results of thect shipping ore

and preparedn Consultants

managemenacy of the cosall capital and

labour costsport charges

ning this studyperating costsal magnesiumsts and capitaled work ratesot disclosed in

material costsevaluated the

SO) operationof the project.

announced toptions in thareleased on 7of Wincheste

tic mineral oreof waste and

eam consistinghich would bethis study wasalc, and othethis study.

ch 2015. Thel assumptions

m a production

e e d . t t d

, , y s

m al s n

s e . .

o t

7 r

e d

g e s r

e s n

For

per

sona

l use

onl

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Issued

SharLast Price

Capital:

Listin

BERL

D

Andrej KExec

RodnNon-exe

Daniel ANon-exe

AnthoNon-exe

P

(Rum JMagnes

(Rum JP

(Rum JAu, Ag, Zn,

M(Ashb

(P

Marble Ba(P

d Capital


g Codes


Directors


Director




Projects


(MgCO3)


(P2O5)


Sc, Mn


Au, Cu


Au, Co, Cu


Au, Co, Cu, Li

KOKOwww

20 PRPO BTEL (ACN

This st11 waderivedbeen pCode.

Deposhundrepleasemeterscarboncarbonexplospad us

EARNI

Resultspotentimillion interesfollowinas rang

Table 1

This stwith allto 1,00initial ryears),The stucan beproducinstallaThe stufully futhe caTable 3, and

CASHF

Importaattractifor inteassumincomeestima

ORABRAB H.korab.com


tudy is based s not used ind from the proprepared by a

it is located soed meters from see Figure

s of unconsolidnate rock at Wnate rock are ive charges.

sing trucks.

INGS ESTIMA

s of the expanially generate over project l

st, tax, and ang table. The ges.

1 Project estim

YEAR (in $ '0

From 37,20To 37,30

tudy assumedl infrastructure

00,000 tonnesrate of product, increasing toudy assumed e deferred untced and sold. ation and consudy assumed nded from thelculations of t1, and TableTable 4.

FLOW ESTIM

antly, in addiive Free Casherest, income ed no debt fue tax, repaymted cash-flows

B REHOUSEm.au


FAX (08) 932

solely on indn the estimatoduction targecompetent pe

outh of Darwinm sealed road1, and Figuredated soil andWinchester. Sclearly marke

Blasted rock w

ATES

nded study shosubstantial prife starting witmortisation bestimated ea

mated EBITDA

R 1 YEAR 2000) (in $ '00000 37,80000 37,900

d a two-stagee required to pof saleable ro

tion of 600,00o 800,000 tonna cut-back to til at least 2,4In year 9 the sstruction of adthat the full co

e project cashthe estimated e 2, and in the

ATES

ition to havinh Flow estimat

tax, repaymeunding. Estimaments of debts are rounded

ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

dicated mineration of the pret. The estimerson or pers

n in the Northd, and less the 5. The dep

d gravel overbSurface (top ed in the phowas then exc

ow that the prre-tax earningth the first yeaut after paym

arnings are rou

at US$105/T m

YEAR 3 ) (in $ '000)

37,500 37,600

e, bench-by-beproduce magnock. Projected

00 tonnes of sanes in year 4,enlarge the o

400,000 tonnestudy assumedditional wateost of the cut-hflows. Conse earnings and

e sensitivity st

ng high EBITted at approxents of debt, ate of Free Ct, royalties, o

d to the neares

URCE

5, AUSTRALIA RALIA

al resource. Inroduction targated mineral ons in accord

ern Territory, han 5km fromposit is a shalburden. Figure

of the overboto. Personnecavated using

roject has attrags estimated aar of operationments for royaunded to the n

magnesium car

YEAR 4 Y(in $ '000) (

49,700 49,800

ench developnesium carbond production saleable magn, and further i

open pit in yeaes of saleabled a partial div

er manageme-back, diversioequently, thesed cashflows otudies of estim

DA, Winchesimately $434.royalties, ove

Cash Flow fromoverheads etcst significant d

ES LI

nferred mineraet, or the forresources unance with the

approximatelym railway line.

low, flat layinge 4 shows theurden) and t

el are visible hydraulic exc

active economat approximatens. Estimates alties, overheanearest signifi

rbonate price a

YEARS 5-8 YEin $ '000) (i201,100 201,200

ment. Stage-nate rock at anchedule showesium carbonncreasing to 1

ar 4. The studye magnesium ersion of a shnt infrastructu

on, and additioe additional c

of year 4, yeamated earnings

ter quarry ha0 million to $4

erheads etc. Pm the quarry ac. is shown idigit and are p

IMIT

al resource shrecast financi

nderpinning the requirements

y 85km by roa For location g body covere test mining othe top of thin the open pcavators and

mics combinedely $613.6 miof potential eaads etc. are icant digit and

and US$0.80 e

EARS 9-12 T(in $ '000) (in250,300 6250,400 6

1 would estan annual rate

wn in Table 12nate rock per y1,000,000 tony shows that tcarbonate ro

hort section of ure in year 9,onal infrastruc

costs have beear 9, and years and NPV sh

as a potentia434.6 million aPlease note tafter paymenn the followin

provided as ran

TED

PAGE 2

hown in Tableal information

his study haves in the JORC

ad, less than aof the projeced by up to 5of magnesiume magnesiumpit setting themoved to the

d with ability tollion to $614.2arnings beforeshown in the

d are provided

exchange rate

TOTAL n $ '000) 613,600 614,200

blish a quarrycapacity of up2 assumes anyear (for first 3nes in year 9hese changesck have beenthe creek and and year 10

cture would been included inr 10 shown inhown in Table

al to generateafter providinghat this studyts for interestng table. Thenges.

2

e n e C

a t

5 m m e e

o 2 e e d

y p n 3 . s n d . e n n e

e g y , e

For

per

sona

l use

onl

y

Issued

SharLast Price

Capital:

Listin

BERL

D

Andrej KExec

RodnNon-exe

Daniel ANon-exe

AnthoNon-exe

P

(Rum JMagnes

(Rum JP

(Rum JAu, Ag, Zn,

M(Ashb

(P

Marble Ba(P

d Capital


g Codes


Directors


Director




Projects


(MgCO3)


(P2O5)


Sc, Mn


Au, Cu


Au, Co, Cu


Au, Co, Cu, Li

KOKOwww

20 PRPO BTEL (ACN

Table 2US$105

Sensitiwith EBprice (running(EBITDThe es

Table 3

US$

US$

US$

US$

US$

US$1

US$1

US$1

US$1

US$1

US$1

US$1

US$1

ESTIM

Study tax, intto $185to $2.5positiveannualFlow Nare rou

Table 4and de

MgCOin US$

F

ORABRAB H.korab.com


2 Project estim5/T magnesium

YEAR (in $ '0

From 30,00To 30,10

ivity study shoBITDA and frewhich is signg at only 60%DA) estimates stimated earni

3 Project estim

YEA@600

($ '0

50/T 6,10

60/T 11,8

70/T 17,4

80/T 23,1

90/T 28,7

100/T 34,3

105/T 37,2

110/T 40,0

120/T 45,6

130/T 51,3

140/T 56,9

150/T 62,6

160/T 68,2

MATED NPV

has also showterest, and roy5 million. This5 million makee even after l volume of sa

NPV to variatiounded to the n

4 Free Cash Flbt repayments

O3 price $/tonne

US

(in'00

rom 129

To 130

B REHOUSEm.au


FAX (08) 932

mated Free Casm carbonate p

R 1 YEAR 2000) (in $ '00000 26,50000 26,600

ows that econee cash flow eificantly below% of its nomto variations

ngs are round

mated EBITDAAR 1

0KT YEAR@600

00) ($ '00

00 6,70

800 12,40

400 18,00

00 23,70

700 29,30

300 35,00

200 37,80

000 40,60

600 46,20

300 51,90

900 57,50

600 63,20

200 68,80

wn that the poyalties has ans high estimate Winchester a 50% drop

ales of 600,000ons in the manearest signific

ow Net Presens at various ma

S$85 US$90

n $ 00)

(in $ '000)

,000 143,000

,000 144,000

ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

sh Flow (in $ ‘0rice and US$0

YEAR 3 ) (in $ '000)

26,300 26,400

nomics of Winestimated to rew the current

minal productioin the magnes

ded to the nea

A (in $ '000) - SeR 2 0KT

YEAR@600K

00) ($ '000

00 6,500

00 12,10

00 17,70

00 23,40

00 29,00

00 34,70

00 37,50

00 40,30

00 46,00

00 51,60

00 57,20

00 62,90

00 68,50

otential Free Cn estimated Nted NPV and a robust projein the magne0 tonnes of m

agnesite price cant digit and

nt Value using agnesium carb

US$95 U

(in $ '000)

157,000 1

158,000 1

URCE

5, AUSTRALIA RALIA

000) after tax, i.80 exchange

YEAR 4 Y(in $ '000) (

34,900 35,000

chester magnemain positive

market priceon capacity. sium carbona

arest significan

ensitivity to mR 3 KT

YEAR 4@800K

0) ($ '000

0 8,300

0 15,800

0 23,400

0 30,900

0 38,400

0 45,900

0 49,700

0 53,500

0 61,000

0 68,500

0 76,000

0 83,600

0 91,100

Cash Flow froet Present Vaa low estimatect. Importantesite sale pricagnesium caris shown in tare provided a

a discount facbonate prices

US$100 US$1

(in $ '000)

(in '000

170,000 184,0

171,000 185,0

ES LI

interest, and drate

YEARS 5-8 YEin $ '000) (i141,000 141,100

nesium carbone even at US$5) with the anSensitivity of te sale price i

nt digit.

agnesium carb4 T

YEARS 5-@800KT

) ($ '000)

35,500

0 65,600

0 95,700

0 125,800

0 155,900

0 186,000

0 201,100

0 216,100

0 246,200

0 276,300

0 306,400

0 336,500

0 366,600

om Winchesteralue (NPV) of ted CAPEX oftly, the NPV oce from currerbonate rock. She following tas ranges.

ctor of 12%pa

105 US$110

$ 0)

(in $ '000)

000 198,000

000 199,000

IMIT

debt repaymen

EARS 9-12 T(in $ '000) (in175,300 4175,400 4

nate quarry ar50/T magnesinual sales frothe approxim

s shown in th

bonate selling-8

T YEARS 9-@1,000KT

($ '000)

45,500

82,700

120,000

0 157,200

0 194,400

0 231,700

0 250,300

0 268,900

0 306,200

0 343,400

0 380,700

0 417,900

0 455,100

r quarry after approximatel

f approximateof Free Cash

ent market levSensitivity of ttable. The est

(in $ '000) afte

US$115 U

(in $ '000)

212,000 22

213,000 22

TED

PAGE 3

nts at

TOTAL n $ '000) 434,000 434,600

re very robustium carbonateom the quarrymate earningse table below

g price 12 T TOTAL

($ '000)

108,600

200,400

292,200

384,100

475,700

567,600

613,600

659,400

751,200

843,000

934,700

1,026,700

1,118,300

provisions foy $184 millionly $2.4 millionFlow remains

vels assumingthe Free Cashimated NPV-s

er tax, interest,

US$120 US$12

(in $ '000)

(in $'000)

26,000 240,00

27,000 241,00

3

, e y s .

0

0

r n n s g h s

,

25

$ ) 00

00

For

per

sona

l use

onl

y

Issued

SharLast Price

Capital:

Listin

BERL

D

Andrej KExec

RodnNon-exe

Daniel ANon-exe

AnthoNon-exe

P

(Rum JMagnes

(Rum JP

(Rum JAu, Ag, Zn,

M(Ashb

(P

Marble Ba(P

d Capital


g Codes


Directors


Director




Projects


(MgCO3)


(P2O5)


Sc, Mn


Au, Cu


Au, Co, Cu


Au, Co, Cu, Li

KOKOwww

20 PRPO BTEL (ACN

Study million Producincreastonnes

The stmarketdependmagneUS$122 yearcarbonyear isbuyersthe dempollutiosomewwith th

The stuof this TerritoCompalosses fully uconcer

OPERA

EstimaTable 6are pro

Table 5

WATE

WAST

MINE A

SUBTO

CONT

TOTAL

CAPAC

SALEA

COAR

CAPA

CAPAC

ORABRAB H.korab.com


assumed a 1tonnes of ma

ction was asssing to 800,00s/year saleable

tudy assumedt prices for mading on the g

esium carbona20 to US$150 rs primarily dnate rock for ts not yet avas and anecdotmand has incon in China. what and will ae growing dem

udy assumed report was apry governmenany income ta(estimated attilised. Studyrning this proje

ATING COST

ated approxim6, and Table ovided as rang

5 Project estim

R MANAGEMEN

TE DUMPS ($/YR

AND CRUSHING

OTAL ($/YR.)

INGENCY (30%)

L ESTIMATE

CITY OUTPUT R

ABLE COARSE M

RSE MAGNESITE

CITY OUTPUT C

CITY OUTPUT F

B REHOUSEm.au


FAX (08) 932

12 year quarragnesium carbsumed to star00 tonnes/yeae magnesite ro

d a selling pragnesium carbrade and the

ate with low imper tonne. Pri

due to supplyhe 2016 year

ailable. Howeval evidence frreased again The study as

average US$1mand.

a US$/AU$ epproximately Unt, the study ax rate used wt approximate

y assumed thect are provide

ESTIMATES

mate project o7. The estimages.

mated operating

Descripti

NT ($/YR.)

R.)

G ($/YR.)

)

ROM MAGNESIT

MAGNESITE CO

E/FINES

COARSE SALEA

FINES (T/YR.)

ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

ry life (see babonate rock (srt at 600,000r of saleable mock in Year 9.

rice of magnebonate rock ralevel of impu

mpurities. Sellices of magne

y shortages ar were approxver, informatirom various mwhile the supssumed that 05 per tonne

exchange rateUS$0.77. To cy used currenwas 30%. It w

ely $13 millionhat that no ded in Table 1

S

perating costsated operating

g costs (shove

ion

TE (T/YR.)

OST ($/T)

ABLE MAGNESIT

URCE

5, AUSTRALIA RALIA

ased on indicsee Table 110 tonnes/year magnesite roc

esite rock of ange from USrities. Wincheing prices for

esium carbonaand increasedximately 27 mon obtained f

magnesium capply has declin

over time mas the increas

e of US$0.80. calculate the pnt royalty ratewas further a

n) will be set odebt will be 3.

s at various og costs are rou

el and truck, d

TE (T/YR.)

ES LI

cated mineral for detailed mof saleable m

ck in Year 4, a

US$105 per S$90 to US$15ester project wthis type of p

ate rock have d demand. Gillion to 28 mifrom Korab’s rbonate produ

ned due to claagnesium carsed supply fro

The exchangpotential royalte of 20% (afssumed that off against taxused. Other

output capacitunded to the n

rill and blast)

Fr

180,0

190,0

6,053,0

6,423,0

1,926,9

8,349,9

375,0

8

300,0

75,0

IMIT

resource estmineral resourmagnesite roand increasing

tonne FOB b50 per tonne

will produce pproduct curren

risen consideGlobal sales o

illion tonnes. discussions

ucing regions amp-down on rbonate price

om new projec

ge rate at the tties’ income ofter allowableaccumulated xable income material mod

ties are shownearest signif

at 375KT/Y ca

rom

000 190

000 200

000 6,054

000 6,444

900 1,933

900 8,377

000 375

27

80%

000 300

000 75

TED

PAGE 4

timate of 12.2ces estimate)ck in Year 1g to 1,000,000

basis. Currenon FOB basisremium gradetly range fromrably over las

of magnesiumData for 2017with potentiasuggests tha

environmentaes will declinects catches-up

time of writingof the Northerne deductions)

Company taxuntil they are

difying factors

wn in Table 5icant digit and

pacity

To

,000

,000

,000

,000

,200

,200

,000

28

80%

,000

,000

4

2 . , 0

t s e

m t

m 7 al t l

e p

g n . x e s

, d

For

per

sona

l use

onl

y

Issued

SharLast Price

Capital:

Listin

BERL

D

Andrej KExec

RodnNon-exe

Daniel ANon-exe

AnthoNon-exe

P

(Rum JMagnes

(Rum JP

(Rum JAu, Ag, Zn,

M(Ashb

(P

Marble Ba(P

d Capital


g Codes


Directors


Director




Projects


(MgCO3)


(P2O5)


Sc, Mn


Au, Cu


Au, Co, Cu


Au, Co, Cu, Li

KOKOwww

20 PRPO BTEL (ACN

Table 6

WATE

WAST

MINE A

SUBTO

CONT

TOTAL

CAPAC

SALEA

COAR

CAPA

CAPAC

Table 7

WATE

WAST

MINE A

SUBTO

CONT

TOTAL

CAPAC

SALEA

COAR

CAPA

CAPAC

All varblastin

CAPIT

Capitamillion Table

Resultscapacitcapacitagreemtasks tbeen epads, a

Severadevelo

ORABRAB H.korab.com


6 Project estim

R MANAGEMEN

TE DUMPS ($/YR

AND CRUSHING

OTAL ($/YR.)

INGENCY (30%)

L ESTIMATE

CITY OUTPUT R

ABLE COARSE M

RSE MAGNESITE

CITY OUTPUT C

CITY OUTPUT F

7 Project estim

R MANAGEMEN

TE DUMPS ($/YR

AND CRUSHING

OTAL ($/YR.)

INGENCY (30%)

L ESTIMATE

CITY OUTPUT R

ABLE COARSE M

RSE MAGNESITE

CITY OUTPUT C

CITY OUTPUT F

riants shown ag.

TAL COST ES

l costs of the(including 308.

s of the studyty and that thty of the proj

ments. The sthus reducing estimated for and other site

al developmepment was se

B REHOUSEm.au


FAX (08) 932

mated operating

Descripti

NT ($/YR.)

R.)

G ($/YR.)

)

ROM MAGNESIT

MAGNESITE CO

E/FINES

COARSE SALEA

FINES (T/YR.)

mated operating

Descripti

NT ($/YR.)

R.)

G ($/YR.)

)

ROM MAGNESIT

MAGNESITE CO

E/FINES

COARSE SALEA

FINES (T/YR.)

above assum

TIMATES

Winchester p0% contingenc

y show that me capacity is ject would thtudy assumedcapital costs bthe developminfrastructure

nt variants welected as the

ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

g costs (shove

ion

TE (T/YR.)

OST ($/T)

ABLE MAGNESIT

g costs (shove

ion

TE (T/YR.)

OST ($/T)

ABLE MAGNESIT

ed standard s

project have cy). Compone

main componeprimarily the

herefore ultimad that contracby limiting the

ment of open e, waste and w

were evaluatee optimum var

URCE

5, AUSTRALIA RALIA

el and truck, d

TE (T/YR.)

el and truck, d

TE (T/YR.)

shovel and tru

been estimateents of the ca

ents of capitafunction of deately depend ctors would be need for own

pit operationwater managem

d initially. In iant for this fe

ES LI

rill and blast)

Fr

180,0

190,0

10,078,0

10,448,0

3,134,4

13,582,4

750,0

8

600,0

150,0

rill and blast)

Fr

180,0

190,0

12,997,0

13,367,0

4,010,1

17,377,1

1,000,0

8

800,0

200,0

uck mining m

ed at approxiapital costs o

l expenditure emand for the

on any off-tae used for mner operated ens with requirement etc.

the end, a tasibility study

IMIT

at 750KT/Y ca

rom

000 190

000 200

000 10,079

000 10,469

400 3,140

400 13,609

000 750

22

80%

000 600

000 150

at 1,000KT/Y c

rom

000 190

000 200

000 12,998

000 13,388

100 4,016

100 17,404

000 1,000

21

80%

000 800

000 200

method with lim

mately $2.4 mof the project

are not sense DSO magneake and/or lo

majority of proequipment. Caed access ro

two-stage, bey update. Unde

TED

PAGE 5

pacity

To

,000

,000

,000

,000

,700

,700

,000

23

80%

,000

,000

capacity

To

,000

,000

,000

,000

,400

,400

,000

22

80%

,000

,000

mited drill and

million to $2.5are shown in

itive to outpuesite rock. Theong term saleoject operatingapital cost hasads, bunding

ench-by-bencher this variant

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ted capital conate rock wereed prior to coversion chann

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s.

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yout of the prand quarry

ructure shown

stimated capita

8 Project estim

SUMMA

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easibility studyting approximpreliminary tecvel technical aes. Further evtion to estima

easibility studyeports releaseal assumption production ta continue to

bility of fundinnable groundsmes indicated

hieve the rangmillion will like

able to raise

B REHOUSEm.au


FAX (08) 932

osts to be bore significantly mmencementnel, and a red installation oyears were i

ed on a concep0,000T/y ROMs of Korab’s dnt for all rockhe owner and

roject under twinfrastructure

n in Figure 3.

al costs are ro

mated capital c

ARY

TER MANAGEME

E INFRASTRUCT

STE PRODUCTS

ARRY

OTAL

TlNGENCY (30%

ESTIMATE

TATEMENT

y referred to ate capital anchnical and ec

and economic valuation workate any ore re

y is based on ed on 13 Janus underpinnin

arget, in the inapply and hag. While the C

s, there is noby the feasibil

e of outcomesely be required

that amount

ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

rne prior to creduced due t of mining, noduced waste

of additional eqncluded in th

ptual mine thaM capacity andiscussions wik produced boperator of th

wo-stage, bene shown in F

ounded to the

costs

ENT

TURE

S DUMPS

%)

in this annond operating cconomic studyassessments

k and approprieserves or to

the material uary 2015 andng the productnitial public re

ave not materCompany cono certainty thality study will b

s indicated in d. Investors shof funding wh

URCE

5, AUSTRALIA RALIA

ommencemento (among otho initial requirand water maquipment, furthe estimates

at could operand 1,000,000ith potential buy Korab’s wh

he Winchester

nch-by-bench Figure 2, an

nearest signif

ouncement haosts of the Wy of the poten

s that are not sate studies arprovide any a

assumptionsd 10 March 20tion target, or eports (and wrially changednsiders all of tat they will prbe achieved.

the feasibility hould note thahen needed. I

ES LI

nt of productiohers) smaller vement for conanagement rether infrastructof operating

ate at various T/y ROM cauyers of the molly owned sProject.

operating sced stage-2 op

ficant digit and

FROM

390,000

580,000

100,000

810,000

1,880,000

564,000

2,444,000

as been undeinchester Mag

ntial viability ofsufficient to sure required beassurance of

outlined elsew015. The Comthe forecast fi

which are not dd. These incluhe material asrove to be co

study, fundingat there is no t is also poss

IMIT

on and sale ovolume of ovenstruction andequirements. Acture) which ar

cashflows fo

capacity leveapacity. Thesemagnesite rocksubsidiary Aus

enario with stapen pit quarr

d are provided

TO

400,000

590,000

110,000

820,000

1,920,000

576,000

2,496,000

ertaken for thgnesium Carbf this Project. upport the est

efore the Coman economic

where in this mpany confirmfinancial informdisclosed else

ude assumptiossumptions toorrect or that

g in the order certainty that

sible that such

TED

PAGE 6

of magnesiumerburden to bed maintenanceAny additionare to be borner the relevan

ls: 375,000T/ye levels werek. Korab is thesMag Pty Ltd

age-1 open piry and quarry

d as ranges.

O

0

0

0

0

0

0

0

he purpose oonate ProjectIt is based on

timation of orepany will be in

c developmen

report, and inms that, all themation derivedewhere in thisons about theo be based on

the range o

of $3.5 millionthe Company

h funding may

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AVAIL

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MININ

Resultsapproxthe wawould entire m

The de

Table 9

The slo

Table 1

A thin magne

ORABRAB H.korab.com


e available ons.

so possible the, a partial stionate owner

the uncertainresults of the

LABILITY OF

March 2016 tepresents inteuilding mater

nate project. Uf funders and/y owned subs(or AusMag) s

e the funding gement agreemorab finalises

ompany assuove agreemen(by way of an

ed from releves appear feas

NG PLAN

s of the studyximately 0.45 aste rock to obe less than mining operat

esign criteria fo

9 Open pit des

ope design pa

10 Open pit slo

UniOveUnd

layer (up to esite at the Wi

B REHOUSEm.au


FAX (08) 932

n terms that m

hat the Compasale, or a salship of the pro

ties involved, feasibility stud

FUNDING

the Company erests associarials) for a $Under this agr/or their nominidiary of Korasecuring additdocumentatioment. The paand publishes

med for the pnt, or in the an institutional pvant counterpsible.

y show that ato 1 T/T, thou

ore ratio would0.2. The aveion was appro

or the open pi

ign criteria

Bench Height Distance betwBerm Width (mRoad Width (mMaximum Roa

arameters use

ope design par

t erburden disturbed rock

5m) of uncoinchester dep

ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

may be dilutiv

any could pure of the projoject.

investors shody.

reported that ated with Chin$6 million dereement, the $nees acquiringab developingtional offtakes

on for this tranrties have ags these results

purpose of thisalternative, as placement, an

parties, and g

average wastugh the actuald be about 0rage ratio of

oximately 0.55

it used in this

(m) ween berms (m)m) m) ad Gradient (%

d in this study

rameters

onsolidated soposit. This ove

URCE

5, AUSTRALIA RALIA

ve to or otherw

rsue other ‘vaject. If it doe

ould not make

it has enterednese steel indevelopment fu$6 million devg a direct 25% the Winches

s for magnesiunsaction includreed to wait ws.

s study that tha combinatio

nd/or a pro-ratgiven the rela

e rock to orel ratio will fluc.85 to 1, whilall waste (ove

5 to 1 T/T.

study are sum

)

)

y are summari

Face Angle 40° 70°

oil and unconerburden woul

ES LI

wise affect th

lue realisations, this could

e any investm

d into an agreedustry, bankingunding for thvelopment fun%-30% equity ter project) an

um carbonate ding the subswith finalising

he funding man of debt (by ta share issueatively low CA

e ratio for the tuate over thee towards theerburden plus

mmarised in th

5 20 5 20

12.5

sed in the follo

Face HIrregu

20 m

solidated allud require prog

IMIT

e value of Ko

n’ strategies smaterially re

ment decisions

ement with Mg and finance

he Winchestending would b

interest in Aund would be rock. The par

scription agreethe funding d

ay be sourcedway of a forw

e). In light of thAPEX of the

e entire mininge life of the pre end of mines waste rock)

he following ta

5

owing table.

Height ular m

uvium overliesgressive remo

TED

PAGE 7

orab’s existing

such as a joineduce Korab’s

s based solely

r. Hong Wange, constructioner magnesiume provided by

usMag Pty Ltdconditional onrties are yet toement and thedocumentation

d either undeward sale) andhe information

project, both

g operation isroject. Initiallye-life the ratioto ore for the

ble.

s the massiveoval to expose

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the haremove

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MINER

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Table 1

There the An

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TIMEF

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For thesales regulatinforma

Howevdepend

ORABRAB H.korab.com


ard, consolidaed by tractor s

shovel and dther a hydraulpit materials. es in the Winch

the shovel anes are expecation.

indicates that aign basis by eised as the pes increase bion.

RAL RESOUR

nt estimated mfollowing table

11 Mineral reso

A Indicated RInferred ReTotal

has been no nual Report 2

formation wasen updated s

aterially chang

uthor of this ation included material assed on 17 July the findings o

ed.

FRAME FOR D

Company is aesium carbonae” with the No

e purpose of tand/or offtaktory project aation obtained

ver; investors d on the actu

B REHOUSEm.au


FAX (08) 932

ated magnesitscraper.

rill/blast optioic excavator oPlease refer hester open p

nd drill/blast opcted to be su

optimum variemploying a spreferred modbeyond this l

RCES ESTIMA

mineral resource:

ources estimat

At 40% MgO Cu

Resources esources

change to the017.

s prepared anince to compled since it wa

report is not in the report

sumptions and2007 continue

of the report r

DEVELOPMEN

aiming to comate rock as soorthern Territor

this study thees of magne

approvals will d from our disc

should note ual availability

ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

te. It is expe

on, conventionor rubber-tyredto the Figure

pit during the p

ption, magnesuitable for ru

ant is for the specialist minide of operatioevel, it is ex

ATES FOR WI

rces at Winche

tes

ut-Off

e Winchester m

d first disclosely with the JOas last reporte

aware of anyreleased on 1d technical pe to apply andreleased on 1

NT AND PRO

mmence the on as practicary Department

e Company asesium carbon

take approxicussions with

that the actuy of funding fo

URCE

5, AUSTRALIA RALIA

ected that the

nal open pit md, front end loa

4 for a photoprior test minin

site would requunning rubber

mining operatng contractorn up to appro

xpected that

NCHESTER M

ester underpin

MgCO‘000 To

12,24,416,6

mineral resou

ed under the JORC Code 20d.

y new inform17 July 2007 aparameters und have not ma17 July 2007

DUCTION

developmentable. The Comt of Primary In

ssumed that tate rock, andmately 12-14the relevant c

al timeframe or the project

ES LI

e unconsolida

mining methodader were proo of the perso

ng operations.

uire blasting pr tyred mining

tions to be init. Study showsoximately 1,00the project c

MAGNESITE D

nning this pre-

Mass onnes 200 400 600

rce estimate s

JORC Code 212 on the bas

ation or data and, in the casnderpinning thterially changeare presented

t of the projempany intendsndustry and Re

he funding fod securing re months. Thi

counterparties

of the develo, completion

IMIT

ated, overburd

ds using rubbeoposed for exconnel setting

prior to excavag equipment

tially carried os that campaig00,000 ROM

could move t

DEPOSIT

-feasibility stu

MgO grade%

43.1 43.6 43.2

since it was la

2004 on 17 Jusis that the in

that materiase of mineral rhe estimates ed. The form d have not be

ect and the s to lodge a “Nesources very

r the project, equired goves assumption.

opment and pof sales and/

TED

PAGE 8

den could be

er-tyred truckscavation of thethe explosive

ation and minewith minima

out on a yearlygn mining canoutput. If the

to year round

udy are shown

e

ast reported in

ly 2007. It hasnformation has

lly affects theresources thain the repor

and context ineen materially

production oNotice of inteny shortly.

completion oernmental andn is based on

production wil/or offtakes o

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Daniel ANon-exe

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(MgCO3)


(P2O5)


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magneaccessforeign

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ORABRAB H.korab.com


esium carbons to transport,n exchange rat

d there be a dese change in aoduction timef

UCTION SCH

ompany used

12 Project prod

ar Salea

('0

2 3 4 5 6 7 8 9 0 1 2

roduction schte which inclu

roduction scheesium carbona

rly to the Timproduction s

esium carbonas to transportn exchange rat

March 2017, 00 tonnes peed to the markang, or propoThis Agreeme

which was annt penalties by

greement. Thithe ongoing d

SS TO TRANS

ansport is avat. Bulk materiastation, stocked for Panam

B REHOUSEm.au


FAX (08) 932

ate rock, sec, and markettes, etc. which

elay with secuany of the remframe.

HEDULE

the following

duction sched

able Tonnage 00 tonnes)

600 600 600 800 800 800 800 800

1,000 1,000 1,000 960

hedule is basdes both indic

edule was devate rock.

eframe for Prschedule will ate rock sales, and other fates, etc. which

Korab adviser year of maket on 4 Noveosed transactent was also nnounced to thy Korab givings termination

discussions wi

SPORT

ailable from Dals handling fapiles, haul roa

max class ship

ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

curing requirfactors such

h are outside t

uring the fundmaining afore

production sc

ule estimates

ROM Tonnatonne

750750750

1,001,001,001,001,001,251,251,251,20

sed solely on cated and infe

veloped after

roduction anddepend on

s and/or offtaactors such ah are outside t

ed that it hasagnesium carember 2015. Ttion with Chinnot related to he market ong notice in wri will allow Koith potential an

Darwin Port’s acility at East ads and a 2,0

ps. Road trans

URCE

5, AUSTRALIA RALIA

ed governmeas magnesiuthe control of

ing, sales, or mentioned fac

hedule in this

age ('000 es)

CP

0 0 0 0 0 0 0 0

50 50 50

0

indicated mierred mineral r

consultation

Developmenthe availabilit

akes, governmas magnesiumthe control of

s terminated rbonate rock This Agreemennese funders

the Heads of 8 Novemberting to the coorab greater nd prospective

East Arm whArm includes

000T/H travellsport by haula

ES LI

ental and regm carbonate the Company

regulatory perctors, it may i

feasibility stud

umulative ROMProduction ('000

tonnes) 750

1,500 2,250 3,250 4,250 5,250 6,250 7,250 8,500 9,750 11,000 12,200

neral resourcresources plea

with potential

t section; invety of funding

mental and rem carbonate rthe Company

Heads of Agfor 5 years

nt was not relannounced tof Agreement wr 2017. The Aunterparty as flexibility in se buyers of ma

hich is locateds an 850m railling gantry shage trucks is a

IMIT

gulatory projerock prices, e.

rmits, or shouimpact on the

dy.

M 0

ResoClassi

indicindicindicindicindicindicindicindicindicindicindicindic

ces. For minease refer to Ta

and prospec

estors shouldg for the Proegulatory projerock prices, e.

greement for (the Agreem

lated to the trao the market with the operaAgreement w

s envisaged bysetting volumeagnesium car

d 93km to thel spur, 1,500T

hiploader. Theavailable to th

TED

PAGE 9

ect approvalsenergy prices

ld there be ane developmen

ource fication

cated cated cated cated cated cated cated cated cated cated cated cated

eral resourcesable 11.

ctive buyers o

note that theoject, finalisedect approvalsenergy prices

the supply oent) originallyansaction withon 23 March

ator of Darwinas terminatedy the terms oes and pricesrbonate rock.

e north of theT/H rail bottome shiploader ishe Darwin por

9

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and to Stuart Batcheat BatcKorab envisaincludeequipmmagne

PROJE

WinchesubsidPlan (MResouthe MMprelimi

Winchedeveloenviron

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MODIF

For main this

BACKG

WincheAusMaagent fBatchearea of

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The po12 timeMagneAnotheand as

ORABRAB H.korab.com


South AustraHighway. Da

elor road approchelor or near

reported thages exporting

es sub-leasingment. HoA proesium carbona

ECT APPROV

ester deposit iary AusMag MMP) will neerces and AusMMP, AusMag nary assessm

ester quarry lapment and onmental impac

ester deposit vals would bepological or hted. The Come that the proje

FYING FACTO

aterial modifyireport please

GROUND INF

ester Magnesag Pty Ltd, a for the output

elor, some 70 f 352 ha.

ain use for maand North Koworld. Global magnesium o

ass furnaces re resistant b

esium alloys metallurgy of c

otential game es greater ca

esium-ion batter advantage os high as +55

B REHOUSEm.au


FAX (08) 932

alia, Victoria, Narwin to Adelaoximately 5kmthe point whe

t it has signeg of 500,000tg of the landovides the baate rock throug

VALS

is located on Pty Ltd. Befored to be submMag will need will lodge a “

ment of the pla

ayout, pit desoperation of ct.

and the minee required to

historical signimpany will liaisect is well sup

ORS

ng factors andrefer to Table

FORMATION

sium Carbonawholly owned

t from the Winkm south of D

agnesium carorea control mmagnesium ooxide is used and cement kbuilding mateused extensi

cobalt and nick

changer is thapacity than littery's charge/of magnesium

5°C whereas

ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

New South Waide railway lm from the depere Batchelor ed Heads of tpa of magne, access to v

asis for the fingh Darwin.

a granted mre the quarry c

mitted to the N to receive the

“Notice of inteanned develop

ign, site infrasthe Winches

eral lease areo establish aificance that ase and consulported.

d assumptionse 13.

ate Project cod subsidiary onchester quarDarwin in the

rbonate rock ismajority of the oxide market is

include: refrakilns; productioerials like magively in cars,kel production

he recent devethium-ion batt/discharge eff

m-ion battery islithium-ion ba

URCE

5, AUSTRALIA RALIA

Wales and Queine runs alonposit. Currentlroad transect

f Agreement esite rock throvarious port fnal port agree

ineral lease Mcan be establ

Northern Territe authorisationent to mine” topment.

structure desigster quarry w

e located whoa quarry. Hoare located wlt with all affe

s used in this

onsists of a Mof Korab Resorry. The projeNorthern Terr

s in productioeconomically

s worth approactory bricks won of flame reg wall, MgO airplanes, ta

n; water purific

elopment of mteries and caficiency is 5 s its ability to atteries cease

ES LI

eensland via Bng Stuart Highy there are no

ts the railway with the opeough Darwin facilities, and ement which

ML 30587 heldished, an apptory Departmen to implemeno allow the D

gn, and choicwill have very

olly on freehowever, any s

within the projected parties a

study which a

Mineral Leaseources Ltd. K

ect is located ritory. Mineral

n of various tyy viable magneximately US$6

which are useetardants; prod

board and manks, APC-s

cation and soil

magnesium-ionn be chargedtimes higher perform at temto function a

IMIT

Batchelor roadhway and is o rail loading fline. On 8 Norator of DarwPort East Aruse of loadewill allow for

d by Korab’s propriate Mineent of Primarynt this MMP. PDepartment to

ce of equipmey small footp

old land and sacred sites ect area wouand various st

are not disclos

e ML30587, 1Korab is the s

2km east fromLease ML305

ypes of magnesium carbon60 billion. The

ed to line the duction of fire

mag cement; and other d

treatment an

n batteries whd in as little a

than a lithiummperatures asat around -15

TED

PAGE 10

d and then viatransected byfacilities eithe

ovember 2017win port. HoArm Wharf anders, and othe

exporting the

wholly ownede Managemeny Industry andPrior to lodging

complete the

nt ensure thaprint and low

no native titleand sites o

ld need to betakeholders to

sed elsewhere

100% held bysole marketingm the town o587 covers an

esium oxidesnate resourcese main sectorsinside of stee

e resistant andproduction o

defence usesd feedstock.

hich have 8 tos 36 minutesm-ion batterys low as -30°C°C. Additiona

0

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use graphite

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with operationdeposit at BaBatchelor, an

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PAGE 11

uently are no

ys markets arehe magnesiumapproximately

easibility studyed by Malcolmand Metallurgyd by MalcolmMr Castle haseposits undedefined in the

Resources andof the matterswas prepared

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8 9474 6166

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rd-looking stacted”, “feel(s)”ssions are inte

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OF TABLES

1 Project esange rate ......

2 Project esments at US

3 Project es....................

4 Free Cashax, interest,

5 Project escity ...............



8 Project es

9 Open pit d

10 Open pit

11 Mineral r

12 Project p

13 Material

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CAUTIONARY

tements are s”, “believe(s)”ended to identstatements re

reading this All of such stnd which genfer materially and statemen

e interpretationeral deposits

es, grade, minid technical pavaluation/reviety prices and fon a timely b

her permits and to the Compcontained in

icable listing rigation, to updred to be of e

timated EBIT....................

timated Free$105/T mag

stimated EBI....................

h Flow Net Pand debt rep

timated oper....................

timated oper....................

timated oper....................

timated capi

design criteria

slope design

resources es

production sc

modifying fa

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RTH, WA, 6005A, 6872, AUSTR22 6333

Y STATEMEN

statements th, “will”, “maytify such forw

egarding futurreport is caut

tatements arenerally are befrom those e

nts. These rison of exploratis and conclusiing dilution, orarameters; risew, completioforeign excha

basis and on nd approvals; pany’s prospe

this report isrules and secdate this forwaarly stage, gra

TDA at US$1....................

e Cash Flow nesium carb

ITDA (in $ '0....................

Present Valuepayments at

rating costs ....................

rating costs ....................

rating costs ....................

ital costs ......

a .................

n parameters

stimates .......

chedule estim

ctors ...........

URCE

5, AUSTRALIA RALIA

NT

at are not hisy”, “anticipate(ard-looking inre explorationtioned not to subject to ris

eyond the conexpressed in, sks and unceon results (inons of economre loss, and resks relating toon of feasibilityange rate fluctacceptable terisks related

ects, properties provided as

curities laws, tard-looking infass roots expl

105/T magne...................

(in $ ‘000) aonate price a

00) - Sensitiv...................

e using a disvarious mag

(shovel and ...................

(shovel and ...................

(shovel and ...................

...................

...................

s .................

...................

mates ..........

...................

ES LI

torical facts. W(s)”, “should”,formation. Th

n results, resplace undue

sks and uncertntrol of the Cor implied or

ertainties inclucluding drill remic evaluationecovery rates; o the potentiay studies and uations; risks

erms; risks relto security of

es and busines of the datethe Company formation. Pilboration status

esium carbon....................

after tax, interand US$0.80

vity to magne....................

count factor nesium carb

truck, drill an....................

truck, drill an....................

truck, drill an....................

....................

....................

....................

....................

....................

....................

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Words such a, “envisage(s)his informationsources, or rreliance on t

rtainties (manyCompany) thar projected byude, but are nresults), the gns; risks relati risks relatingal for delays project deve related to failated to delaytenure; and o

ess strategy. e of this repo

does not intebara East ands.

nate price an...................

rest, and deb0 exchange r

esium carbo...................

of 12%pa (inbonate prices

nd blast) at 3...................

nd blast) at 7...................

nd blast) at 1...................

...................

...................

...................

...................

...................

...................

TED

PAGE 12

as “expect(s)”)” and similan includes, bureserves, andhese forward-y of which aret could cause

y, the forward-not limited toeology, gradeng to possibleto changes inin explorationlopment; riskslure to secure

ys in obtainingother risks and Any forward-

ort. Except asend, and doesd Pilbara Wes

nd US$0.80 .................. 2

bt rate ........... 3

onate selling .................. 3

n $ '000) s ................ 3

375KT/Y .................. 4

750KT/Y .................. 5

,000KT/Y .................. 5

.................. 6

.................. 7

.................. 7

.................. 8

.................. 9

................ 14

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Figure

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OF FIGURES

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B REHOUSEm.au


FAX (08) 932

ity plan ........

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ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

....................

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...................

3 – two-stage...................

12 – two-stag...................

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TED

PAGE 13

................ 16

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................ 17

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20 PRPO BTEL (ACN

Table 1M

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13 Material moODIFYING FAC

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FAX (08) 932

odifying factorsCTOR

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ESOU

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s

Winchester delicence) ML30520 October 204renewed multipentitled to a rooperating costscharges and romagnesite rocksubsidiary Melmineralisation wrights to uraniu

The deposit isBatchelor road to Adelaide railpower runs alovoltage power Gas pipeline ruavailable on sitalternative acco

Sea transport 93km to the noArm includes stockpiles, haushiploader is haulage trucksVictoria, New Svia Stuart HighHighway and isdeposit. Currennear the pointNovember 201with the operatomagnesite rockleasing of the and other equipwhich will alloDarwin.

The mineral resclassified as ind

Development ooff-take agreemwith number partnerships, of

Winchester depKorab’s wholly be established,be submitted toand AusMag w

Environmental

URCE

5, AUSTRALIA RALIA

posit is located587. ML30587 h40 prior to whicple times. Easoyalty of 5% os, transportationoyalties, as wek mined from rose Gold Minwithin the projem mineralisatio

s located 2kmand 75km from

line runs approong the Batchelines run acros

uns approximatete. Accommodaommodation is

is available froorth of the pro

850m rail spul roads and adesigned for

s is available tSouth Wales ahway. Darwin s transected byntly there are nt where Batche7, Korab reporor of Darwin pok through Darwland, access topment. HoA pr

ow for exportin

sources estimadicated mineral

of Winchester dments being com

of parties reff-take and long

posit is located owned subsid

, an appropriateo the Northernill need to recei

impact studies

ES LI

COMMENTS d within the grhas an area of ch date it can bst Africa Resouf net profits acn and sales coell as marketingWinchester de

nes Pty Ltd oect. Polymetallion within the pro

m east from thm Darwin port aoximately 5km flor road next ts the project 2 ely 3 km east oation is availabavailable in Da

m Darwin Portject. Bulk matepur, 1,500T/H

2,000T/H travPanamax clasto the Darwin nd Queenslandto Adelaide ra

y Batchelor roadno rail loading felor road transrted that it hasort. HoA envisagwin Port East Ao various port ovides the bas

ng the magnes

tes that were u resources.

depends on onmpleted succesegarding poteg-term sales ag

on granted miiary AusMag Pe Mine Manage Territory Depaive the authoris

s have been u

IMIT

ranted Mineral 352 ha and wa

be renewed. Thurces Limited chieved after d

osts and all taxeg costs and feeposit. Korab’sowns rights to ica Minerals Ltoject.

he town of Balong Stuart Hfrom the deposto the deposit. km to the east

of the deposit. Pble at Batchelorarwin.

t’s East Arm werials handling rail bottom

velling gantry sss ships. Roaport and to S

d via Batchelorailway line rund approximatelfacilities either sects the railw

s signed Headsges exporting oArm Wharf andfacilities, and

sis for the final sium carbonate

sed to underpin

ne or more lonssfully. Korab isential joint vegreements.

neral lease MLPty Ltd. Before ement Plan (MMartment of Min

sation to implem

ndertaken for

TED

PAGE 14

Lease (miningas granted up tohe lease can be(ASX: EAF) is

deduction of ales, governmen

ees on sales os wholly owned

100% of goldd owns 90% o

Batchelor alongighway. Darwin

sit. High voltageAdditional high

t of the depositPotable water isr town, and the

which is locatedfacility at Easdump station

shiploader. Thed transport by

South Australiar road and thenns along Stuary 5km from theat Batchelor o

way line. On 8s of Agreemenof 500,000tpa od includes sub-use of loadersport agreemene rock through

n this report are

ng-term sale, os in discussionsentures, equity

L 30587 held bythe quarry can

MP) will need tones and Energyment this MMP.

the Wincheste

4

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KOKOwww

20 PRPO BTEL (ACN

Native T

Social

ORABRAB H.korab.com


Title

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mwdthsmi

WlHsp

WOpaqNpdjltpOi

ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

magnesite projwill have a mindeveloped as athan crushing ahave a very ssorters will be mines in the vicin operation.

Winchester depland and no naHowever, any significance thaprotected.

Winchester minOther than conpersonnel direcand operating tquarry has a Northern Territproviding revedirectly benefit jobs. Whilst thelabour, local buthis would not project will aimOther than coinvolved in esta

URCE

5, AUSTRALIA RALIA

ect and the asnimal impact. Tha magnesite rocand screening. small footprint. utilised were pcinity of the tow

posit and the mative title approv

sacred sites at are located

ne would utilisentractor’s staff,ctly employed the mine (fewerpotential to ge

tory governmennue stream foTerritorians by

ere is no legal usinesses and l

have negativem to utilise localontractor’s staffablishing and op

ES LI

ssessment showhis is primarily ck quarry with nThe quarry andMobile equipm

ossible. There wn of Batchelor

mineral lease avals would be rand sites of within the pro

e contractors othere would b

by AusMag Ptyr than 10). In adenerate significnt over the life or the governmy supporting lorequirement to

labour would bee impact on the

contractors opf, there would perating the qua

IMIT

ws that the mabecause the p

no processing od associated inment, includingare several roc

r, some abando

are located whorequired to estaanthropologica

oject area wou

operating on cbe relatively smty Ltd involved ddition, Winchecant royalties

e of the projectment, the quaocal businesseso utilise local ce given preferee viability of thperating on a c

be a numbearry.

TED

PAGE 15

agnesite quarryroject would be

of the rock othenfrastructure wilg crushers andck quarries andoned, and some

olly on freeholdablish a quarryal or historicauld need to be

ampaign basismall number oin establishing

ester magnesiteincome for thet. In addition torry would alsos and providingcontractors andence as long ashe project. Thecampaign basisr of local staf

5

y e r ll d d e

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g e e o o g d s e . ff

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D

Andrej KExec

RodnNon-exe

Daniel ANon-exe

AnthoNon-exe

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KOKOwww

20 PRPO BTEL (ACN

Figure

Figure

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1 Site locality

2 Conceptual

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plan

layout at end

ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

of year 3 – two

URCE

5, AUSTRALIA RALIA

o-stage, bench

ES LI

h-by-bench dev

IMIT

velopment var

TED

PAGE 16

riant

6

For

per

sona

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RodnNon-exe

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KOKOwww

20 PRPO BTEL (ACN

Figure

Figure

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3 Conceptual

4 Test mining

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layout at end

of magnesium

ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

of year 12 – tw

m carbonate ro

URCE

5, AUSTRALIA RALIA

wo-stage, benc

ock using drill-

ES LI

ch-by-bench de

-blasting.

IMIT

evelopment va

TED

PAGE 17

ariant

7

For

per

sona

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KOKOwww

20 PRPO BTEL (ACN

Figure

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5 Winchester

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FAX (08) 932

Magnesite dep

ESOU

RTH, WA, 6005A, 6872, AUSTR22 6333

posit relative t

URCE

5, AUSTRALIA RALIA

to basic infras

ES LI

tructure and to

IMIT

opography

TED

PAGE 18

8

For

per

sona

l use

onl

y

for personal use only · last price capital: listin berl d andrej k exec rodn ... ny g. wills...

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