Ann: Scale of Korbel Grows at Block D Estelle Gold Project, page-55

2 things to say here:

1) the fan shape will make the deeper parts very unlikely to be moved into the measured and indicated classification due to the fact that the drilling gets further apart as they get deeper. One of the most important criteria the competent geologist takes into consideration when classifying resource is drill spacing. the closer spacing at the shallow parts of the deposit will make it a no-brainer to move into measured and indicated.

2) its quite clear that in the results we have seen to date, most of the holes contain their highest grades (specifically, larger continuous chunks of high grades) at the top. I feel really good about this now that they are finally including scales in their figures/reports. There is also pretty good correlation across holes of this high grade. that said, there is no geologic reason I can think of for why this would be the case in all the other prospects. Deeper high grade zones certainly can and do exist in IRGS deposits. If given the choice, we would much rather have the higher grade and more dense vein systems in the shallow bits, because mining gets exponentially more expensive with depth - due to increasing strip ratio and trucking distances.