Ann: Vital Hits 8m @ 7.26g/t Au including 2m @ 26.7g/t Au, page-9

Whilst these numbers aren't exactly lighting the world on fire, they're actually really good.

I've done a quick back of the envelope calculation on the available info based on the one lode we've been drilling at Bella Tondi.

If we assume the following:

Strike length: 250m (I know it's open either side but just for the example)
Depth: 190m (open at depth)
Width: 10m (to be conservative)
Density: 3t/m3

Using the above numbers we get a possible total mass of 1.425mt. The following grades produce the below results:

5g/t: 254k oz contained gold
7g/t: 356k oz contained gold
10g/: 500k oz contained gold

Super quick and dirty but it demonstrates relatively conservative numbers we could prove up a very substantial resource.

This is a very high grade deposit and the average grade may be to the upside. Plus this is just for the one lode. The neighboring lode may have similar characteristics.

Due to the nature of the shape of the lode, we'd probably go open pit for as deep as economical (probably a high strip ratio initially) and then go underground so the costs and CAPEX would increase at that point but for the most part, this is looking to be very favorable.

The best thing about all of this is that if the Watershed deal does go ahead, this project is valued at ZERO right now. Unbelievable. 200koz should be worth a minimum of $20m at the low end especially when our AISC will be very low IMO.

Fingers crossed we can seal the deal and start to develop this possible monster.