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Wingellina is only one of many known nickeliferous limonites areas within the CMP and is the only one to date to have been extensively drilled out. During the year Metals X completed a drilling program at it’s Claude Hill Prospect located approximately 25kms to the East of Wingellina where it has defined a JORC compliant Inferred Resource of 33 million tonnes grading 0.81%Ni, 0.07% Co and 39% Fe$_{2}$O$_{3}$. * 

Wingellina will be a simple mining operation with free-digging limonite ore existing in a number of pits over a strike length of approximately 10 kms and widths of up to 500m. Average waste to ore strip ratios over the mine life are 1.1:1 and 0.50:1 for the first 20 years. Mine sequencing in early years will take advantage of the favourable orebody geometry, which allows mining to progress with a strategy to mine higher grade ores early in the project life to maximize early cash flow. Average mined grades for the first 20 years are approximately 1.1% Ni and 0.09% Co. The favourable mining conditions result in very low mining costs with low risk. Mining represents less than 5% of the overall operating cost for the project. 

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Ore processing is planned with an annualized treatment rate of 4.3 million tonnes of ore per annum. Product is planned to be a mixed nickel- cobalt hydroxide concentrate of 32%-38% purity, which is to be sold and shipped off site for refining to nickel and cobalt metal products. 

The feasibility study demonstrated the ability to profitably operate a mine in the Central Musgrave Region notwithstanding the previously perceived issues of location and isolation. The project is capital 

intensive with an estimated construction cost of $2.2 billion (plus EPCM and contingency). Operating costs will be maintained as low as possible through the use of piped natural gas for power supply, locally sourced calcrete for neutralisation and local sourcing of good quality process water. 

The Company has completed the bulk of its baseline environmental studies required for environmental approvals for the project. All works required for the submission of the Public Environmental Review document are now complete except for detailed definition of the proposed water sources, and associated baseline studies for supporting infrastructure corridors. 

* For full details, please refer to the Claude Hills section on page 9. 

