MORRUA

The Morrua project is in advanced engineering stage. Once there is certainty regarding the availability of grid power on mine site the capital for the project will be secured and construction can commence, with mechanical completion expected to take 12 months.

Morrua is located on the right bank of the Melela River approximately 350 km from the provincial capital of Quelimane in Mozambique and 25 km due north of Marropino.

The Morrua deposit comprises a series of tantalum bearing pegmatites situated within the Mozambique pegmatite province of the Precambrian Mozambique fold belt. The deposit has been interpreted by SRK to comprise six flat-lying, shallow-dipping, laterally extensive but vertically thin, pegmatite bodies.

Resource Category	Tonnes (Mt)	Ta₂O₅ Grade (ppm)	Contained Ta₂O₅ (k lb)
Indicated	4.65	510	5,230
Total Indicated Resources	4.65	510	5,230
Inferred
In-situ ore	1.69	470	1,750
Stockpiles	1.43	300	950
Total Inferred Resources	3.12	392	2,700

The mineral resource has been classified in accordance with the SAMREC code.

It will be an open-pit operation with the difference from Marropino being that all the soft, weathered material has already been removed by previous mining operations, both formal and artisanal. The plant, which will need crushing and milling circuits because of the hard ore, is being designed and will be built by a South African based engineering company. Final beneficiation of Morrua concentrate will be done centrally at the Marropino facility and an evaluation of the benefits a more integrated Marropino-Morrua operation will be completed this year. Annualised production is forecast to be 450,000 lb Ta₂O₅ with a life of mine estimated at between 9 and 10 years.