MagIndustries Corp MAAFF

RE: Makola: Amended & restated technical report (N

[Redpill]

Here are some highlights from pages 87-91, confirming the estimated reserves and drafting a feasibility plan, including (reasonable) costs and timeframe. Pretty much we are talking about initial investment of ~8M EURO and a "guesstimate" of 5 years to potential production (reasonable, since usually a potash mine takes 5 to 7 years, sometimes 10 to get to production).

But for now, we need to pass the first hurdle... does not make sense talking in dept about Makola before successfully Finance Mengo.

"
Based on these assumptions the estimated inferred resources over the whole area amount to
~9200 million tonnes of carnallitite ore at 12% K2O,
~ 70 million tonnes of sylvinite or at 21% K2O.
(...)

In the opinion of the authors the Makola Exploration License area contains sufficient inferred resources to justify further expenditures of funds to confirm and expand the resource and to develop indicated and measured resources and reserves in compliance with NI 43-101. Exploration, engineering, geotechnical, and economic studies are required to develop indicated and measured resources and to estimate reserves.

(...)

At present the resources come from only about 25% of the license area and in this area assaying has been done usually on less than 50% of potential mineable potash horizons.

(...)

Recommendations

The authors of the report recommend a phased development of the project consisting of

1 Confirmation Phase
This phase consists of the drilling of 4 small diameter confirmation drill holes near historical drill holes with assays to confirm the reliability of the historical assaying data and to obtain reliable data for a scoping study that identifies potential mining and processing methods.

(...)

2 The Scoping Phase
Conditional upon favorable outcome of Phase 1, continue with a scoping (order of magnitude) study of the 4 mining and processing alternatives discussed for the confirmation phase to identify the most promising concept and to provide a basis to estimate in some detail the permitting, mining, processing, transport, marketing and economic basis for the project.

(...)

3 Selection and Pre-Feasibility Phase
The goal of the drilling of these 4 to 6 holes is
• to confirm and refine the geological model
• provide adequate sized samples for rock mechanical and other test work
• extend the area of indicated/measured resource within the license area

(...)

4 Detail Exploration and Feasibility Phase
Conditional upon favorable outcome from Phase 3, proceed to a definitive feasibility study. This requires concentration of exploration on a single area with probably drilling of further holes and detail engineering to support the final mining and processing concept.

Estimated Project Costs and Time Frame
Phase 1 is estimated to cost about 2.3 million EURO and could be completed in 10 months
Phase 2 is estimated to cost about 0.3 million EURO and could be completed in 6 months
Phase 3 is estimated to cost about 4 million EURO for exploration, and 1.5 million EURO for further studies and could be completed in 18 months
Phase 4 costs and time frame cannot be reasonably estimated yet.
"