Ann: Drill Programme commences at Wattle Dam Gold Mine, page-7

I would say that those sporadic lower grade hits are the result of RMS looking for the continuation of the WD ore body without success. They would have done a fair bit of underground drilling to try and locate the continuation.

As alluded to in the announcement the prevailing geological model at the time resulted in drilling to the east. As I understand it the new theory is if the orebody was in place, ie not sheer hosted as originally thought, and then subsequently terminated by the later stage Spargoville shear zone. In the WD pit wall the Spargoville shear zone can be seen and used to calculate a displacement vector as shown in the image. This displacement vector can then be used to try and locate the ore body extension, in other words where the shear zone has possibly moved the lower part of the ore body to. Based on this theory the ore body should be found to the under explored west.

As the company states should they find what they are looking for they would engage a much larger drill campaign as this would be a potential company maker (my words).

This is only my understanding and obviously there is a lot of structural and geological analysis that has gone into the companies decisions on where to drill so I may be off the mark in my thoughts. Happy to hear others thoughts with a greater geological understanding. To me this theory seems to have merit and offers MXR the possibly of finding the rich WD lode extension. GLTA