Ann: Additional Holes at Trafalgar Copper Gold Discovery, page-113

You have given me a challenge and it may take a few days to research this and give my view on the code that links mineralisation to lithology and structure. We have at least one regional fault running through much of the HMX ground (several 10s of km) that is probably a key pathway for ore fluids from deeper in the crust. There are numerous splay faults that clearly host mineralisation and are probably fed by the regional fault structure. How these are positioned with respect to lithology I would need to study further. Are there riedel shears from a crustal strike slip fault which have resulted in something akin to the negative flower structure shown below (diagrams from Wikiwand acknowledged with thanks). Quite possibly but I am not sure how this relates to lithology yet but it is a very good question. I don't know what the current interpretation of the nature and origin of the regional faults is so I am needing more research, I will need a week on this one or possibly a lifetime.

As to the value of the Trafalgar lode based upon the "resource" I calculated based upon 4 drill holes there are many ways to value it. Contained metal at todays prices about $100 million (7238t Cu = $86m + 6368oz Au =$14m total = $100m contained metal). Approximate value if it were sold is harder but average sale of gold resources in the last few years has been around $250/oz Au in the resource (not hard to convert Cu to Au equivalent to put a figure on it). In a detailed study the mining costs, metallurgical recovery, mining method, wastere ratio and many other things are taken into account to put a net present value on a deposit (NPV). If the deposit is 50 or 100 Mt then HMX will be worth many times what it is today. Resources on 100% HMX ground will add more value to shares but will use our cash reserves to prove up.