Melior Resources Inc. updated the market about progress at its Goondicum Ilmenite Project. Commissioning at Goondicum is on-going with June ilmenite production of 9,580 tonnes and apatite production of 900 tonnes against budget goals of 12,300 tonnes and 3,7001 tonnes respectively. Total fiscal year 2019 production since the November 2018 restart was 45,120 tonnes of ilmenite and 4,444 tonnes of apatite (76% and 32% of budget respectively). Figures One and Two show the general trends of ilmenite and apatite production improving however not consistently and not at the rate management and the board require. Although the ilmenite product quality is good, the project is yet to consistently produce the targeted top quality Goondicum AA specification ilmenite. Changes to the circuit have been initiated and it is expected that Goondicum AA specification ilmenite will be produced from September 2019. Production is being impacted by the failure of the processing plant to reach the 375tph design throughput; the average throughput rate over the past three months was around 270tph or 72% of design. This is attributable to the ore feed to date containing a higher proportion of slimes than previously seen or anticipated (average of 60% vs budget of 41%) and has led to bottlenecks in the feed preparation plant. An upgrade to the slime removal circuit was installed in June to address this issue. Work is being done to assess further debottlenecking requirements as well the orebody. A total of 26,910 tonnes of ilmenite was shipped in fiscal year 2019. In Australian dollar terms, current market ilmenite prices appear to be maintaining a level close to budget of AUD 275/t for the AA spec ilmenite. Ilmenite demand remains strong with continuing enquiries from around the world for Goondicum ilmenite products. Apatite offtake has been significantly below forecast at 775 tonnes for fiscal year 2019 with the contracted domestic customer being behind schedule in construction and commissioning of their own fertilizer manufacturing facility hindering sales in this area. This is expected to be a short-term issue however has a material financial impact on project cash flow.