FENIX RESOURCES LTD — Capital/Financing Update 2010

Feb 4, 2010

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ASX/MEDIA RELEASE

5 February 2010

ASX Codes: EMG, EMGO

DIAMOND CORE TESTWORK CONFIRMS POTENTIAL FOR HIGH GRADE DIRECT REDUCTION IRON CONCENTRATE AT BEYONDIE IRON PROJECT

Key Points

• Initial diamond core test work has shown the potential for a high value Direct Reduction iron concentrate product to be produced from the Beyondie Iron Project

• Davis Tube Recovery results confirm potential for a Direct Reduction magnetite concentrate grading up to 71.6% Fe, 1.8% SiO2

• Davis Tube Recovery results also show processing will not need reverse flotation to remove silica

• Premium magnetite product is achievable with ultra low detrimental impurities of aluminium, phosphorous and sulphur

• Emergent plans to develop the Beyondie Project into a world class magnetite project with potential for a long life iron ore operation

Perth-based exploration company Emergent Resources Limited (ASX: EMG) (Emergent) is pleased to announce extremely positive results from its recent diamond core testwork program at its Beyondie Iron Project in Western Australia’s Mid West region.

Testwork by way of Davis Tube Recovery (DTR) from diamond drill core from the Beyondie Project has confirmed the potential to produce a high-grade Direct Reduction (DR) quality magnetite concentrate with exceptionally low level detrimental impurities. Results of up to very high 72.8% Fe and very low 1.1% SiO2 show strong potential for an onsite plant to produce the highest quality DR concentrate of +68%Fe and less than 4% SiO2.

The significant advantage of DR grade magnetite feedstock is that the energy requirement is significantly lower than for Hematite during smelting and also that the impurity level of the feed is small. This means that little flux will be required in the smelting process and will result in an increase in the overall Fe grade of the burden.

DR grade is sold at a premium as it can lead to significant fuel and coke savings in the blast furnace in addition to enhancing productivity. Also the very low sulphur and phosphorus levels reduce pollution emissions – a significant factor for Chinese smelters.

Emergent has completed drilling 113 holes for 17,414.7 metres in October 2009, including 11 diamond core holes for advanced metallurgical testwork. Head grade assays were routinely completed over the prospective iron zones. Magnetic concentrate grades calculated from core measurements are summarized in table 1.

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Table 1: Beyondie Magnetite Core DTR Results

Beyondie Davis Tube Magnetic Concentrate Recovery Summary	Beyondie Davis Tube Magnetic Concentrate Recovery Summary	Beyondie Davis Tube Magnetic Concentrate Recovery Summary	Beyondie Davis Tube Magnetic Concentrate Recovery Summary	Beyondie Davis Tube Magnetic Concentrate Recovery Summary	Beyondie Davis Tube Magnetic Concentrate Recovery Summary	Beyondie Davis Tube Magnetic Concentrate Recovery Summary	Beyondie Davis Tube Magnetic Concentrate Recovery Summary	Beyondie Davis Tube Magnetic Concentrate Recovery Summary	Beyondie Davis Tube Magnetic Concentrate Recovery Summary	Beyondie Davis Tube Magnetic Concentrate Recovery Summary
Hole ID	Width	m From	m To	Fe %	SiO2 %	Al2O3 %	P %	S %	LOI	Magnetic Mass Recovery %
BDD008	132	155	287	70.8	2.0	0.3	0.003	0.001	‐3.2	28.6
BDD009	110	190	300	70.6	2.4	0.3	0.003	0.001	‐2.8	26.0
BDD012	66	180	246	71.2	2.0	0.2	0.003	0.003	‐3.1	31.4
BDD012	76	308	384	70.9	2.4	0.1	0.010	0.005	‐3.1	32.9
BDD013	68	198	266	71.6	1.8	0.2	0.003	0.001	‐3.3	31.8
BDD022	116	102	218	70.9	2.1	0.2	0.002	0.002	‐2.9	28.0

Note:

Weighted average downhole composite intervals shown. Davis Tube Recovery (DTR) samples consist of 4m composites composed of ½ HQ core. DTR feed size is nominally 80% passing 25 micron. Cut off grade of 10% mass recovery used. LOI is by thermogravimetric method at 1000deg C. Elemental grades calculated by XRF fusion method

Davis Tube Recovery (DTR) determinations will be routinely used to evaluate the grade characteristics throughout the Beyondie deposit to determine potential product characteristics and assist the mining schedule. DTR’s of 350 Reverse Circulation drill samples are in progress to provide wide coverage and are targeted for completion later first quarter. Refer to figure 2.

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Figure 2: Magnetic image with planned DTR locations and drillhole coverage

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About the Beyondie Iron Project

The Beyondie Project is located adjacent to the Great Northern Highway and Goldfields Gas Pipeline (see Project Location map) in the northern part of WA’s mid-west iron ore precinct. Potential shared rail and port infrastructure developments for the project are in progress.

Initial metallurgical test work has shown the potential for the project to produce a high grade magnetite concentrate of +68%Fe, with very low impurities (aluminium, titanium, phosphorous and sulphur).

Emergent plan to develop the Beyondie Project into a long term, large scale, high grade magnetite concentrate mining operation.

Inferred resources of 561 million tonnes grading 27.5% Fe have been established with additional 480 – 520 million tonne Exploration Target in the drilled area and another 3.7 to 4.2 billion tonnes Exploration Target outside the drilled area.(Refer ASX release 25 November 2009) The later Target mineralisation is based on aeromagnetic data and geological mapping with the interpreted volumes modelled and confirmed as part of the independent Beyondie Mineral Resource Modelling study. The target mineralisation tonnage and grade is conceptual in nature as there has been insufficient exploration at this stage to define an increased Mineral Resource and it is uncertain if further exploration will result in an increased Mineral Resource.

Chinese State Owned Enterprise China Metallurgical Investment Co Ltd (CMIC) has successfully completed Due Diligence on a proposed $200 million Development Joint Venture with Emergent for the Beyondie Project and has entered a binding agreement for the CMIC/Emergent Beyondie Development Joint Venture, which provides for a 50:50 JV, A$200 million funding by CMIC, and a placement of shares and options to CMIC to raise around $5 million and give CMIC an approximate 15% holding in Emergent. Also, Emergent announced the acquisition of 100% ownership of the Beyondie Project on 5 October 2009 through the purchase of De Grey Mining Limited’s 20% free carried interest.

ENDS

For further information please contact:

Garry Hemming James Moses Managing Director Media and Investor Relations Emergent Resources Mandate Corporate Mob: 0419 835 757 Mob: 0420 991 574 E: ghem@westnet.com.au Website: www.emergentresources.com.au

Technical information in this report has been prepared under the supervision of Mr Garry Hemming, a Director of the Company and a member of the Australasian Institute on Mining and Metallurgy (AusIMM). Mr Hemming has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code). Mr Hemming consents to the inclusion in this report of the Information, in the form and context in which it appears.

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Appendix

Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results
Hole ID	m From	m To	Magnetic Mass Recovery %						LOI
				Fe %	SiO2 %	Al2O3 %	P %	S %
BDD008	155	159	20.8	70.9	2.2	0.2	0.004	0.001	‐3.2
BDD008	159	163	35.5	69.5	3.0	0.4	0.007	0.009	‐2.6
BDD008	163	167	32.3	70.9	2.2	0.3	0.003	0.001	‐3.2
BDD008	167	171	33.7	70.7	2.5	0.3	0.003	0.001	‐3.2
BDD008	171	175	36.0	70.9	2.3	0.2	0.003	0.001	‐3.2
BDD008	175	179	36.5	70.6	2.0	0.3	0.003	0.001	‐3.2
BDD008	179	183	32.3	69.8	2.5	0.2	0.003	0.001	‐3.1
BDD008	183	187	33.0	70.9	2.1	0.3	0.003	0.001	‐3.2
BDD008	187	191	32.4	70.8	2.1	0.3	0.002	0.001	‐3.3
BDD008	191	195	36.5	71.2	2.0	0.3	0.003	0.001	‐3.3
BDD008	195	199	35.0	70.0	2.2	0.3	0.005	0.001	‐3.2
BDD008	199	203	35.0	70.3	1.9	0.3	0.003	0.001	‐3.2
BDD008	203	207	36.0	71.6	1.6	0.2	0.003	0.001	‐3.2
BDD008	207	211	35.5	71.6	1.4	0.2	0.003	0.001	‐3.2
BDD008	211	215	30.5	71.4	1.7	0.2	0.003	0.001	‐3.3
BDD008	215	219	27.5	71.5	1.4	0.2	0.002	0.001	‐3.2
BDD008	219	223	18.5	71.1	1.6	0.2	0.003	0.001	‐3.1
BDD008	223	227	24.0	71.0	2.2	0.3	0.004	0.001	‐3.2
BDD008	227	231	28.0	70.0	2.5	0.3	0.003	0.001	‐3.1
BDD008	231	235	27.0	71.1	2.0	0.3	0.003	0.001	‐3.2
BDD008	235	239	28.5	71.3	1.6	0.2	0.003	0.001	‐3.1
BDD008	239	243	25.5	71.4	1.9	0.2	0.003	0.002	‐3.2
BDD008	243	247	24.5	71.1	1.7	0.2	0.003	0.001	‐3.3
BDD008	247	251	23.5	71.5	1.7	0.3	0.002	0.001	‐3.3
BDD008	251	255	20.3	71.3	1.5	0.2	0.002	0.001	‐3.4
BDD008	255	259	21.5	71.3	1.8	0.2	0.002	0.001	‐3.3
BDD008	259	263	30.5	71.0	1.8	0.2	0.003	0.001	‐3.2
BDD008	263	267	29.4	71.0	2.1	0.3	0.003	0.001	‐3.2
BDD008	267	271	27.5	70.4	2.2	0.3	0.003	0.001	‐3.1
BDD008	271	275	28.5	70.2	2.2	0.3	0.003	0.001	‐3.1
BDD008	275	279	20.5	71.2	1.7	0.3	0.003	0.001	‐3.2
BDD008	279	283	17.5	71.4	1.3	0.2	0.003	0.001	‐3.2
BDD008	283	287	20.0	69.9	2.5	0.4	0.004	0.003	‐2.4
BDD009	190	194	31.0	70.1	3.1	0.4	0.004	0.001	‐2.9
BDD009	194	198	25.1	69.6	3.2	0.5	0.004	0.001	‐2.7
BDD009	198	202	36.5	70.2	2.6	0.4	0.003	0.001	‐2.9
BDD009	202	206	30.5	70.4	2.5	0.3	0.003	0.001	‐2.8
BDD009	206	210	28.0	70.5	2.1	0.3	0.002	0.001	‐3.0
BDD009	210	214	33.5	71.0	1.9	0.2	0.002	0.001	‐2.8
BDD009	214	218	30.5	71.1	2.2	0.3	0.003	0.001	‐2.9
BDD009	218	222	28.5	70.8	2.2	0.3	0.002	0.001	‐3.0

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Beyondie Davis Tube Magnetic Concentrate Recovery Results

Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results
Hole ID	m From	m To	Magnetic Mass Recovery %						LOI
				Fe %	SiO2 %	Al2O3 %	P %	S %
BDD009	222	226	31.5	71.1	2.4	0.3	0.003	0.001	‐3.1
BDD009	226	230	30.0	70.7	2.1	0.4	0.002	0.001	‐2.9
BDD009	230	234	29.5	71.2	1.8	0.3	0.003	0.001	‐3.1
BDD009	234	238	22.5	69.8	3.2	0.4	0.003	0.001	‐3.0
BDD009	238	242	22.5	70.5	2.3	0.4	0.002	0.001	‐2.9
BDD009	242	246	21.0	70.4	2.4	0.4	0.002	0.001	‐3.0
BDD009	246	250	23.5	70.9	2.4	0.3	0.002	0.001	‐2.9
BDD009	250	252	30.0	70.8	2.5	0.3	0.003	0.001	‐3.0
BDD009	252	256	22.5	70.9	2.3	0.3	0.002	0.001	‐2.5
BDD009	256	260	23.0	70.2	2.4	0.4	0.003	0.001	‐2.1
BDD009	260	264	24.1	70.6	2.5	0.3	0.002	0.001	‐2.7
BDD009	264	268	26.0	70.6	2.1	0.3	0.002	0.001	‐2.9
BDD009	268	272	26.0	70.3	2.4	0.4	0.003	0.001	‐2.6
BDD009	272	276	18.0	71.0	1.6	0.3	0.002	0.001	‐2.3
BDD009	276	280	18.5	71.3	1.6	0.3	0.003	0.001	‐2.9
BDD009	280	284	21.0	69.9	2.4	0.3	0.003	0.001	‐2.1
BDD009	284	288	26.0	69.7	2.5	0.3	0.003	0.001	‐2.4
BDD009	288	292	24.0	70.8	2.4	0.3	0.003	0.001	‐2.3
BDD009	292	296	20.5	71.0	2.2	0.3	0.004	0.001	‐2.7
BDD009	296	300	23.5	70.2	2.4	0.4	0.007	0.001	‐2.5
BDD012	180	184	27.9	67.6	4.7	0.4	0.006	0.011	‐2.5
BDD012	184	188	38.4	71.2	2.5	0.2	0.003	0.002	‐3.1
BDD012	188	192	34.9	71.7	1.6	0.2	0.003	0.003	‐3.2
BDD012	192	196	31.4	71.5	1.7	0.2	0.003	0.002	‐3.3
BDD012	196	200	33.0	71.4	2.1	0.2	0.003	0.002	‐3.2
BDD012	200	204	36.9	71.3	1.5	0.2	0.003	0.002	‐3.3
BDD012	204	208	36.4	71.8	1.7	0.2	0.003	0.002	‐3.3
BDD012	208	212	36.4	71.4	1.6	0.2	0.003	0.002	‐3.3
BDD012	212	216	37.9	71.9	1.6	0.2	0.004	0.003	‐3.3
BDD012	216	218	34.0	72.0	1.5	0.2	0.002	0.002	‐3.3
BDD012	218	222	27.0	70.6	1.6	0.2	0.002	0.003	‐2.7
BDD012	222	226	33.5	71.6	1.3	0.2	0.003	0.002	‐3.0
BDD012	226	230	31.5	71.2	1.6	0.3	0.002	0.003	‐3.2
BDD012	230	234	26.5	71.3	2.2	0.4	0.002	0.004	‐3.2
BDD012	234	238	24.5	70.3	3.3	0.5	0.003	0.012	‐3.0
BDD012	238	242	26.9	71.6	1.6	0.2	0.002	0.004	‐3.2
BDD012	242	246	17.0	71.3	2.2	0.3	0.003	0.004	‐3.3
BDD012	308	312	30.0	69.6	4.4	0.2	0.018	0.021	‐3.0
BDD012	312	316	32.5	70.4	2.3	0.1	0.007	0.002	‐3.2
BDD012	316	320	34.3	71.4	2.4	0.2	0.010	0.002	‐3.2
BDD012	320	324	37.5	70.3	2.5	0.2	0.015	0.008	‐3.1
BDD012	324	328	39.5	70.7	2.6	0.2	0.017	0.012	‐3.1
BDD012	328	332	39.0	70.2	2.6	0.2	0.017	0.012	‐3.1

5

Beyondie Davis Tube Magnetic Concentrate Recovery Results

Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results
Hole ID	m From	m To	Magnetic Mass Recovery %						LOI
				Fe %	SiO2 %	Al2O3 %	P %	S %
BDD012	332	334	41.0	70.8	2.5	0.1	0.010	0.001	‐3.1
BDD012	334	338	40.0	71.2	2.2	0.1	0.009	0.001	‐3.1
BDD012	338	342	29.5	72.1	1.2	0.1	0.006	0.007	‐3.2
BDD012	342	346	23.0	72.3	1.1	0.0	0.010	0.001	‐3.3
BDD012	346	350	29.5	71.3	1.4	0.1	0.010	0.004	‐3.2
BDD012	350	354	22.5	72.4	1.4	0.0	0.009	0.001	‐3.3
BDD012	354	358	9.5	71.8	1.7	0.0	0.012	0.004	‐3.3
BDD012	358	362	20.0	71.6	0.9	0.1	0.007	0.003	‐3.3
BDD012	362	366	30.0	71.9	1.5	0.1	0.009	0.001	‐3.0
BDD012	366	370	44.5	70.6	2.5	0.1	0.009	0.002	‐3.1
BDD012	370	374	41.0	71.0	2.6	0.1	0.005	0.002	‐3.2
BDD012	374	376	36.0	69.6	3.2	0.1	0.006	0.002	‐3.1
BDD012	376	380	33.0	70.7	3.3	0.1	0.006	0.003	‐3.0
BDD012	380	384	45.5	70.2	3.6	0.1	0.007	0.004	‐2.8
BDD013	198	202	32.0	71.3	2.7	0.3	0.006	0.002	‐3.1
BDD013	202	206	35.0	70.9	2.5	0.3	0.003	0.001	‐3.2
BDD013	206	210	36.0	70.4	2.2	0.2	0.004	0.001	‐3.3
BDD013	210	214	34.5	70.9	2.1	0.2	0.003	0.001	‐3.3
BDD013	214	218	33.0	72.0	2.1	0.2	0.002	0.001	‐3.3
BDD013	218	222	30.5	72.0	1.3	0.2	0.003	0.001	‐3.3
BDD013	222	226	31.0	72.2	1.7	0.2	0.003	0.001	‐3.2
BDD013	226	230	35.5	71.4	1.9	0.2	0.004	0.001	‐3.3
BDD013	230	234	30.5	71.1	1.5	0.2	0.002	0.001	‐3.2
BDD013	234	238	33.5	71.5	1.6	0.2	0.002	0.001	‐3.3
BDD013	238	242	34.5	72.6	1.6	0.2	0.003	0.002	‐3.3
BDD013	242	246	30.0	72.3	1.7	0.2	0.003	0.001	‐3.2
BDD013	246	250	29.5	71.8	1.8	0.3	0.002	0.002	‐3.3
BDD013	250	254	34.0	71.2	2.0	0.3	0.003	0.002	‐3.2
BDD013	254	258	30.5	71.0	1.6	0.2	0.002	0.001	‐3.3
BDD013	258	262	26.5	71.7	1.4	0.2	0.002	0.001	‐3.3
BDD013	262	266	24.0	72.8	1.1	0.2	0.002	0.001	‐3.3
BDD022	102	106	28.5	70.6	2.3	0.2	0.001	0.002	‐2.7
BDD022	106	110	33.5	69.8	2.6	0.2	0.001	0.002	‐2.7
BDD022	110	114	35.5	71.1	2.0	0.1	0.001	0.004	‐2.8
BDD022	114	118	36.0	70.8	2.4	0.1	0.001	0.002	‐2.8
BDD022	118	122	21.0	70.9	1.6	0.2	0.001	0.002	‐2.3
BDD022	122	126	31.0	71.1	2.2	0.2	0.002	0.001	‐2.7
BDD022	126	130	31.5	70.0	3.1	0.2	0.001	0.002	‐2.7
BDD022	130	134	30.5	71.0	1.9	0.2	0.002	0.0020	‐2.7
BDD022	134	138	31.5	71.2	2.0	0.2	0.001	0.003	‐3.2
BDD022	138	142	24.0	70.6	2.0	0.2	0.003	0.002	‐2.9
BDD022	142	146	32.5	71.1	2.0	0.2	0.003	0.002	‐3.0
BDD022	146	150	33.0	71.4	1.3	0.1	0.001	0.002	‐3.1

6

Beyondie Davis Tube Magnetic Concentrate Recovery Results

Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results	Beyondie Davis Tube Magnetic Concentrate Recovery Results
Hole ID	m From	m To	Magnetic Mass Recovery %						LOI
				Fe %	SiO2 %	Al2O3 %	P %	S %
BDD022	150	154	26.0	70.8	2.1	0.2	0.003	0.002	‐2.5
BDD022	154	158	25.5	70.5	2.3	0.3	0.003	0.002	‐2.7
BDD022	158	162	23.5	71.4	1.7	0.2	0.002	0.002	‐2.9
BDD022	162	166	20.5	71.2	1.5	0.2	0.002	0.003	‐3.0
BDD022	166	170	23.0	69.9	2.3	0.3	0.002	0.002	‐2.7
BDD022	170	174	24.0	70.2	2.6	0.3	0.004	0.004	‐2.7
BDD022	174	178	25.0	70.1	2.8	0.3	0.003	0.004	‐2.6
BDD022	178	182	29.0	70.2	2.6	0.3	0.003	0.004	‐3.0
BDD022	182	186	28.5	70.9	2.8	0.3	0.005	0.004	‐2.9
BDD022	186	190	25.0	69.6	2.8	0.3	0.003	0.004	‐2.8
BDD022	190	194	25.5	71.4	1.9	0.2	0.002	0.004	‐3.3
BDD022	194	198	24.5	71.7	1.5	0.2	0.002	0.002	‐3.2
BDD022	198	202	26.0	72.0	1.4	0.2	0.002	0.001	‐3.3
BDD022	202	206	21.5	71.5	1.4	0.2	0.002	0.002	‐3.3
BDD022	206	210	27.0	71.3	1.8	0.2	0.003	0.002	‐3.0
BDD022	210	214	25.0	70.9	1.8	0.2	0.002	0.003	‐3.0
BDD022	214	218	44.5	71.9	1.3	0.2	0.003	0.002	‐3.0

Note:

Davis Tube Recovery (DTR) samples consist of 4m composites composed of ½ HQ core. DTR feed size is nominally 80% passing 25 micron. LOI is by thermogravimetric method at 1000deg C. Elemental grades calculated by XRF fusion method

7