Nextsource Materials Inc (NSRCF)

[Luke_McCain]

Hello maseraticoupe,

this is an entirely different news release than the one I was referring to, which was only a month or so old. On that one, if you used Ctrl-F, and tried to find the word "permit", it would come up empty. Anyways...

Under an exploration permit, the Company will initially be limited to an input of 20,000 cubic metres (or approximately 50,000 tonnes) of front-end feed into the demonstration plant for the purposes of verifying the flow sheet design process of the proposed Molo Project mine plan. The Company has already initiated the application process for a mining permit, which upon approval would remove the 20,000 cubic metre test limit.

Okay, a demonstration plant and research under an exploration permit (50,000 mt of raw feed input) is an entirely different animal than the extraction and sales of material from an exploitation permit (50,000 mt of processed output.) I thought you were referring to the latter, in your previous post. You can mine in all three types of permits, to one degree or another. You can only sell material with an exploitation permit. A pilot plant is not a commercial mine, right?

NSRC is still one step removed from that. If they had a legal/official exploration permit, only time, money, and energy would have stopped them since the PEA was published. That's why they correctly state "will initially be limited" (future), instead of something like "are currently limited" (present).

The holder of a PR license also benefits from the right to have the mineral substances mined within the research limits in order to use them for laboratory analysis or for samples to the prospecting opportunity or for industrial tests.

Here are a few links that will be extremely helpful to you, and make things more clear, just in case you haven't seen them before:

From the Bureau du Cadastre Minier de Madagascar:

Exploration Licence (PR): http://bcmm.mg/en/pr/

Exploitation Licence (PE): http://bcmm.mg/en/pe/

There is also a link to view the Mining Code there, or you can download it here, for a personal copy:

http://www.eisourcebook.org/cms/Feb%202013/Madagascar%20Mining%20Code%20(in%20French%20&%20English).pdf

Cheers,

Luke

P.S. I am getting ready to leave all these message boards, for myriad reasons, so please do not take it personally, when I stop replying.