The increase in Ore Reserves has reduced the ROM strip ratio within the open cut from 11.1 (waste t:ore t) to 3.1. The updated Ore Reserve estimate will be used to inform the updated BFS which is due for completion in the coming weeks. The increased Ore Reserves combined with a lower strip ratio has improved the economic viability of the project via the implementation of larger mining equipment and a reduction in the amount of costly selective ore mining. The Ore Reserves have been limited to a practical pit shell based on the current economic limits of the deposit. An isometric view of the Ore Reserves pit shell is shown below. Figure 14: Isometric View of Ore Reserves Pit Shell. Ramps were designed into the pit shell using suitable widths and grades to accommodate the planned open cut mining fleet. The open cut shell and the LGS were subdivided into detailed mining blocks which were then fully scheduled, including haulage modelling, for the planned life of mine. The results of the schedule were then assessed in a financial model to determine the overall economic viability of the project. Only Ore Reserves, including the LGS, were used to generate revenue, with all other materials classified as waste. The financial assessment showed that the deposit generated substantial cash flows, which will be quantified in the updated BFS. Mineral Resources and Ore Reserves Statement continued 36 EQ Resources Limited Annual Report 2022
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