Ann: MAG to re-focus on East Lachlan Assets, page-31

Hi JJ,

You seem to be confused:

The area you are calling hot is where Newcrest had a $10M JV with AQX and Newcrest pulled out of the JV straight after spending their minimum spend of $1M.

Didn't find anything except hundreds and hundreds of meters of cover from memory?

AQX Consultant John Holliday handpicked both drilling targets (in the Newcrest JV and in the current drilling) so hopefully he has more luck this time around.

I am hoping that they do hit a monster because that will be good for MAG and others in the area.

Thanks for using my map.

If you look at the map you will see:
- AQX has the right rocks (GREY colour on the map - needed to have any chance of making a big discovery) up North over parts of their tenements where they didn't find anything with the Newcrest JV
- AQX doesn't have the right rocks down in pretty much all of their tenement next to the Alkane discovery
- MAG has the right rocks/geology across pretty much all of their project next to ALK
- MAG already has decent drill results and they are from surface

In relation to this morning's JV finalisation announcement; it's a bit bizarre as I said, in that the JV partner spent 90% ($2.7M out of $3.0M) of the required costs and then agreed not to spend another $300k which would've got them 51% of the Parkes project - thanks for the donation I guess!

Compare that to AQX where Newcrest spent the minimum 10% of their total JV and then left the building.

You seriously can't compare AQX to MAG as MAG's grounds are so much more prospective and a lot more advanced with drill results, etc.

MAG's Parkes project (which is MAG's probably 3rd or 4th best project) is more advanced and likely more prospective than all of AQX's NSW projects - and that's MAG's 3rd or 4th best project. Think about that.

Then think about MAG's current MC of $12M and AQX's current MC of $40M.

Which one is more likely to give greater % gains from here? I'll leave that with you.

Give it a week or two and it should catch up to the AQX valuation, which is multiples of MAG currently.

And as I said (about 10 times at least), I want AQX to fire up and discover something big as it's good for MAG and all in the area, BUT I'm also saying that MAG's grounds are much better and that MAG has a lot higher chance of making a big discovery than AQX due to the more prospective grounds as well as projects being a lot more advanced with drill results already and getting close to finding that big discovery - AQX is just trying to hit any mineralisation (they have no mineralisation hits so far to my knowledge???). And never say never, AQX might make it big - big boys like Newcrest do miss things too!!!

Cheers,

GB.