Nextsource Materials Inc (NSRCF)

[riverrock]

The Green Giant Vanadium mine has an National Instrument 43-101 compliant (“NI 43-101”) Indicated Resource of 49.5 million tonnes at an average grade of 0.693% vanadium pentoxide (“V2O5“) containing 756.3 million pounds of V2O5 and an Inferred Resource of 9.7 million tonnes at an average grade of 0.632% V2O5 containing 134.5 million pounds of V2O5.

The Indicated Resource after applying recoveries of 82% would contain: 756.3 x 0.82 or 642.9 million pounds of recoverable vanadium pentoxide V2O5.
The Inferred Resource after applying recoveries of 82% would contain: 134.5 x 0.82 or 110.3 million pounds recoverable vanadium pentoxide V2O5.

The above figures are based on just 25% of the Green Giant Property and does not include 100% of the Vanadium property on Green Giant's south border which was obtained by agreement with Malagassy Minerals.

I believe it would be best for Nextsource to first convert the above Indicated and Inferred Resources to a National Instrument 43-101 compliant (“NI 43-101”) Measured and Indicated Resources as the earlier Indicated and Inferred Resources are well regarded, so obtaining Measured and Indicated resources can be accomplished without to much further exploration drilling.

Then they should carefully drill to provide a new National Instrument 43-101 compliant (“NI 43-101”) Proven and Probable Resource based on a 10 year mine life that is based on short term projected demand for vanadium pentoxide V2O5. and using the Staged Development concept as been planned for Molo. If demand were to increase plant operation can be increased in necessary increments or go to the larger Stage 2 Plant.

Such could also allow them to have a small facility to gain experience for on site production of the vanadium electrolytes used in VRB's.