Ann: Steam Engine Gold Deposit - Commencement of Drilling, page-35

Thats an interesting analysis there @ozmadian - I assume the figure that you included in your post is from a SPQ company presentation, but I am wondering why it wasn't in the recent drill announcement as it seems a pretty logical place to put their justification for drilling with that map and cross section that you gave us.

I interpreted the release a bit differently in that SPQ are claiming that they have a 50 hole program for approx 2500m of drilling planned. As I read it I can see the deeper planned diamond holes CE1 (550m), CE2 (250m) and in the south CE3 (450m), now these may have RC pre-collars but these deep holes will certainly have diamond core tails, and whatever the ratio of RC to Diamond core is, they account for 1200m of the total drilling budget of 2500m. This only leaves 1300m of budgeted metres for the remaining 47 or so drill holes which dosen't seem enough metres of drilling to achieve much at first glance. Perhaps I am mistaken and the planned holes denoted with CE1 - 3 are planned holes in the future to test these deeper targets later on?

Even if the whole 2500m is all RC and is following the geochemical anomaly (hopefully concentrating on the >100ppb Au soil anomalies in pink) along strike, then that would seem a reasonably logical approach because we can see that the map image shows very limited historical drilling at many of the >100ppb Au soil anomalies, and the extent of the lodes along strike hasn't even been properly tested in many places.

I am thinking Peter Hwang and Co are trying to nail down the surface orientation and extent of the lodes with RC drilling and when/if that is successful then they might have added enough ounces to justify the deeper diamond core drilling to test for those suggested ore shoot corridors (possible feeder structures?) that they have described in blue text. If they aren't ore zone corridors, then I suspect they could well be structural controls that even if barren, will still affect the orientation and possible repetition of ore lodes in the Steam Engine and surrounding lodes. Whatever the case the incomplete drill info that they have now suggests a quite linear but vein controlled system of gold lodes so they will be looking to find many more shallow low grade odes and also follow them along strike and down dip to find higher grade veins/lodes that improve the economics.

Only commenting on this because I was involved with some of the data compilation for this area quite a few years ago, and the area struck me then as seriously under-explored.

Another thing that sticks out to me is why haven't they extended the soil sampling back over the original Steam Engine Zone using the same method as the other soil survey? Because the tennor and size of the Steam Engine Zone is now fairly well understood by drilling, that would put some of the other eastern lode zones into perspective as to whether they are better/the same or worse geochemical anomalies than Steam Engine? So if for instance the Steam Engine zone itself shows up as a >100ppb Au soil anomaly, then that really makes the other Eastern Lodes very attractive targets and worthy of follow up work.

My comments and scribbling attached below, will require more drilling but I am sticking around for the next round of RC and diamond drilling as I am intrigued with what they come up with.