Ann: High-Impact Drilling at Mt Alexander, page-222

we are continuing to drill and there will be good news soon.



Our early drilling at Mt Alexander was testing the low-hanging fruit with numerous conductors drilled by holes less than 100m deep. We had spectacular success and were able to provide results announcement every 7-10 days or so.



The deeper drilling we are now undertaking obviously takes longer to complete. Deeper holes are also prone to additional challenges – like rig maintenance, unstable holes, ground issues, crew changes, etc – which can further delay completion of drill holes. So a little more patience is needed with the current drill program.



The science is telling us that we have a fertile intrusive unit. There is potential for larger deposits along strike or at depth – in areas where EM surveys have not been able to investigate. The petrography indicates that the nickel sulphides have come from a very deep source and likely are associated with a large igneous event – indicating potential for a larger deposit somewhere in the system.



There are high priority areas along the Cathedrals Belt which have not been tested, and we must continue drilling.



We are generating new targets in the northern tenements and we will schedule these for drilling soon, maybe by the RC rig which we expect to arrive in April.



You are right to be looking forward to drilling at the Paterson. We think our targets have geophysical characteristics similar to other main discoveries in the region, and the potential for early success is very good. Its looking like we will be able to complete the heritage survey in early May with drilling to start very soon after that. We will say more about this soon.



There are a number of programs under way that could quickly revive the share price.



Regards

John Prineas