Ann: Half Year Accounts, page-3

Extraction of good parts, very encourating!!!

resource modelling and estimation is currently underway.

Highlights from the drilling resource drilling results reported to date include:
17 m @ 0.14% cobalt and 0.42% copper
10 m @ 0.13% cobalt and 0.45% copper
10 m @ 0.12% cobalt and 0.59% copper
7.49 m @ 0.14% cobalt and 0.79% copper, including 5 m @ 0.15% cobalt and 1.01% copper
6 m @ 0.15% cobalt and 0.51% copper, including 2 m @ 0.25% cobalt and 0.52% copper
7.7 m @ 0.11% cobalt and 0.52% copper
5 m @ 0.16% cobalt and 0.48% copper
7 m @ 0.11% cobalt and 0.46% copper
6.3 m @ 0.12% cobalt and 0.46% copper
4 m @ 0.18% cobalt and 0.50% copper

88% of the cobalt recoverable using conventional sulphide flotation techniques.  Subsequent leach extraction test work has demonstrated that approximately 95% of the cobalt and copper is able to be leached using relatively low temperature and pressure conditions.  Further optimisation of the flotation and leach parameters is ongoing.  The Company is planning to produce downstream products, namely cobalt sulphate heptahydrate and copper cathodes in Namibia, from the Project.  

Assuming positive results from the Scoping Study due in May, 2018, the Company plans to embark on an aggressive Pre-Feasibility Study program, commencing in the first half of 2018.