Ann: C4 Conductor Delivers High Grade Zn Intersection at Manindi, page-20

As I said in my post, the results look promising and a resource extension is there. If the cut off grade was 0.5% zinc (which I agree is too low anyway) the market would have gone ballistic here, but with a 2% cut off (which is how they seem to report) any of the reported zinc grades below 2% in the announcement are discounted by the market based on table 1 in the announcement. What will be discounted is holes 58 and 59, hole 63 is marginal. Holes 61 and 64 look good in this announcement.

The cut of grade is the key here - cut off grades could be lower if have copper and cobalt credits that can find its way into the concentrate product as a byproduct (or seperate product). Would be interesting why a 2% cut off grade was chosen and whether that cut off grade can change given the recent (and expected rises) in zinc prices. For example the following company - PNX - has a cut of grade of 1% in its JORC but suspect low as has silver and gold credits - see slide 21 2nd bullet point - http://www.pnxmetals.com.au/downloads/ASX/Jan-June2017/PNXPresentation-Investor-20Feb2017ASX.pdf

Conversely I have read/seen higher cut off grades for zinc as well, and that arises when need to go further at depth and/or there is little other commodity in the zinc that become credits in a concentrate as a byproduct. Which takes me to the next point - the announcement said little about cobalt and copper, so that may also have seen part of the market reaction today.

So more drilling still required here, but some of the results look good and the resource extension is promising so lets see what next drilling brings and hope the core comes with not only zinc but copper and cobalt (or another valuable mineral recoverable in the byproduct) that influences the cut off grade.

All IMO