Ann: Mt Lindsay Drilling hits 93 metre zone Sn-W Mineralisation, page-34

The last Ann on 11 Novincluded: “Chalice’s geophysicalsurvey is part of the first stage of the JV earn-in…”

I am no miner. Going cross-eyed reading boring sciency stuff about geophysical surveys, I gather that big drilling andlab assays are not involved. All that happens, I understand, is that a couple of probes are stuck into the ground, and a number of different machines whirr and produce data. As a non-miner, I presume that this data can be produced and reduced to a report in a short time. So there is time yet for CHN to perform.

If that all happens and CHN spends what is neededby 30 Nov, good - CHN has done its job.

But if that doesn’t all happen by Nov 30^th,I believe that CHN can still stay in the game. If we look again at the wording of the summary of the JVA that has been disclosed: unless there is something in the actual JVA (that we have not seen) clarifying the meaning of “by spending … on exploration”, and unless there is some industrystandard as to what “spending … onexploration” includes/means, it seems to me that CHN could draw a cheque for the correct amount (PA has suggested $220K) in favour of its favourite geo surveyor and provided that the cheque is presented by 30 Nov (whether or not any surveying actually takes place) it quite possibly will have satisfied its obligations.

As torrita posted “Absolutely nothingto do with whether or not they have any results/reports etc.” (57622220). I agree.

And if my assessmentis correct this could continue with the further lots of exploration expenditurerequired under the earn-in. If so, we might not see actual exploration and proving up for some time. Consequently CHN might not ever need to do anything except pay money.

That is,provided CHN pays what it needs to, and unless there is something in mining practice and/or thedetail of the JVA that protects VMS in this situation, I suspect that we possiblymight have no right to demand that CHN get on with development of Thor.

I am not thesharpest tool in the shed, but I suggest that CHN could, with its new-foundwealth, stump up a cheque for the whole $3.7M now, grab its 70% and park Thorindefinitely as Plan B until it properly sorts out Julimar. Then it could concentrate on proving up the replica Julimar.

I hope I’m wrong in my analysis.

But if I have missedsomething, or if there is a fatal flaw in my thinking, or if anyone disagreeswith this, I am happy to be corrected.

All my own opinion,of course.