LOGISTICS AND CAPACITY

SOUTH-WEST UNICUP

3 Exploration Licences
200km from Albany Port on Sealed Roads

SOUTH-WEST ANTWALKER

3 Exploration Licences
150km – 180km from Bunbury Port on Sealed Roads

ARGYLE

3 Exploration Licences
90km – 120km from Wyndham Port on Sealed Roads

ESPERANCE

3 Exploration Licences
20km – 110km from Esperance Port on Sealed Roads

Key to the project is the logistics solution. Only preliminary investigations have been undertaken to date.

A typical outline of one possible process is:

Transportation to Bunbury Port

Product is transported from site to port via double road trains carrying approximately 60 tonne each. Trucks are loaded on-site and travel to a laydown facility located closer to port, where product is off-loaded and stored until ready to be transported to ship.

The Unicup project is well positioned with access to Muirs Highway and easy connection to South Western Highway. Both Highways are used for double road trains. The Antwalker Project is not quite as straight forward, as a short interconnection from this site to the South Western Highway would be required, and these approvals would need to be sought and granted. The Pipeclay Project is however ideally situated for access to the South Western Highway.

If available, Berth 8 at Bunbury Port would probably be the most viable option for the Company as it has the ship-loading system suitable for the efficient loading of silica sand. In 2020 indications were that some capacity did exist at Berth 8, however future capacity remains unknown. Berth 5 may also be an option for the Company, but would require investment in ship-loading equipment, however this location could potentially allow for product storage, thereby eliminating the need for product laydown elsewhere.

Bunbury Port

Dual Port Strategy with Albany Port

It may be possible for the Company to have a dual Port strategy for the South-West projects by considering Albany Port as an option. At this time no investigations or undertakings have been given, however if it were possible, this may provide the Company with the opportunity to increase its production output.

Albany Port Image from www.southernports.com.au

Wyndham Port

Product from the Argyle Project would be transported via access road to the major Great Northern Highway. This highway is rated for quad trailer haulage trucks.

Preliminary discussions with Cambridge Gulf Limited, the operators and managers of the Wyndham Port (on behalf of the WA government), have indicated their willingness to negotiate for the lease land and/or sheds within the industrial zone at the Port. This could include access to a range of their services such as bulk storage and manning of operations/stevedoring. They have also suggested cost efficiencies by sharing ship loading resources with other mineral companies operating in the region. Whilst early days at this stage, this is nonetheless an encouraging prospect.

Wyndham Port Image from www.aussietowns.com.au

Esperance Port

Product would be transported via sealed roads to Port. The road networks are rated for industrial haulage vehicles.

No discussions have taken place as yet with the Port authorities.

Esperance Port Image from www.southernports.com.au

Government Infrastructure Spending

On the 31st July 2020, the Western Australian Government announced a $330 million infrastructure spending package as an economic stimulus response to the COVID-19 pandemic. In this package, approximately $18 million was identified for immediate infrastructure upgrade to the Bunbury Port. Also announced, was $3.8 million funding for the preparation of a feasibility study for upgrade and new infrastructure at both the Bunbury and Kwinana Ports to support the possible reopening of the Greenbushes rail line. The upgrading of port facilities, and the re-opening of the Greenbushes rail line, could have positive benefits for any future project logistics capabilities and costs.

Portside Processing to be Investigated

The Company plans to investigate the cost benefits of developing its own processing facilities in designated industrial areas within close proximity to the ports. This would allow greater access to both human resources and established infrastructure/utilities. It believes its operations will be less intrusive for the surrounding communities (particularly those in the South-West Projects). It would also allow for resources to be transported from multiple sites.

Indicative Cost Estimation

The Company has received cost per tonne rates inclusive of all costs of road transportation, lay-down facilities and port handling and loading charges. These indicate that the logistics options appear viable (based on the October 2020 information).