Ann: Valuation and Listing Rule 7.1A.4(b) and 3.10.5A Information, page-20

I actually don’t think it’s as binary as you believe.

Because shallow depths for the core of the porphyry have now been ruled out, through previous drilling and the discovery of the low angle structure which seems to have displaced the bottom of the alteration halo, any discovery made now will likely be at significant depth.

Because nature is also highly unpredictable and exhibits all forms of variation, particularly when it comes to the chemical composition of rocks, there is always a possibility that if and when the core of the targeted porphyry is discovered if might lack the strong gold component/association to the mineralisation that is a feature of other deposits of its type.

This could lead to a situation where mineralisation of interest is discovered but more drilling is required to determine whether economic extraction is capable at the depth of discovery. (ie the company could progress drilling the discovery but its economic value would not be known for a long while yet).

In this scenario I’ve got no doubt the initial reports of the discovery of the core of the porphyry would stimulate interest and buying of the stock but if the metal endowment is lacking (ie statistically the Cu equivalent grades, including the gold, are low in the percentile distribution for these types of deposits, then the 10 bag potential will not materialise).

Look at how the share price and market cap of XAM has fluctuated over all this time and that company has the bull by the horns drilling these types of deposits in a world class region known to host one of the biggest depoists of this type in the world. If SVY got to XAM’s stage of developmemt and we use XAM’s market cap as the benchmark then the multiple is only 2.4 times from SVY’s Market cap. Not a lot of upside considering you think the downside is 0.1 x. Esh