under the radar, page-4

I rang the company the other day and spoke to the Company Secretary, I think his name was Nigel. We spoke at length and it was quite informative. Some key points were there are 2 things needed for successful Geothermal power generation. 1. Temperature and 2. Flow rate. What they are doing at Blanche 1 is testing the flow rate properties of the granite at that depth. You may remember that the first well in Hungary would not be successful for geothermal power generation due to the current flow rates even though the temp was 146 degrees C. The JV may go back to that well at a later date to try to improve the flow rates. The JV is now moving onto the next project. This experience will prove very valuable when GRK applies it here in Australia.

Blanche 1 is less than 2kms deep. They expect much higher temps the further they drill. GDY is at about 5kms and have very good temperatures 250 degrees plus. PTR is drilling to 4kms at Paralana and is hoping for 200 degrees.

GRK has applied for another GEL, he wouldn’t say where.

There was another matter which I am not sure if he was supposed to tell me, but hopefully it will be announced to the market in the next couple of months. Don’t worry, it will be good news.

Porter I agree that GRK is a long term investment but one with plenty of upside.