Ann: Bioleaching pilot plant test yields significant results, page-34

If todays results for Ema show a huge increase in the grades using fire assay over ICP-MS it follows that there's potential for a huge increase in the pilot plant grades using fire assay for the Tres Estados pilot plant results!@Midnight26

Straight up we are told that the initial test using the composite sample from Ema was principally designed to fully commission the pilot plant. The CEO further commented, in order to reinforce the point, that the composite sample from Ema was used in the initial testing of the revised pilot plant in order to address any potential issues before moving to conducting tests on a Tres Estados resource hole. So what do we glean from the sequence of events and the methodology of approach?

Firstly, as far as I understand the ore from Tres Estados yields more significant grades than the ore from Ema. Tres Estados is the flagship project where BBX has established a resource and is beginning an Environmental Impact Study in the lead up to the development of the project. Secondly, BBX were conscious of the fact that potential issues could arise during the commissioning process and arguably they may have been concerned that further delay could place further pressure on the share price and further dent the confidence of investors. Better to keep your Tres Estados powder dry.

The upside is that the pilot plant has performed well with a significant increase in gold, palladium and rhodium following the bioleaching process. The downside is that the headline grade numbers from Ema despite rising from 0.72 g/t 5E PGMs to 3.36 g/t Pd-Au, were probably never going to set the world-on-fire. Investors simply get stuck looking at the 3.36 number.

I am busily trying to look through the trees to see the forest. As stated, BBX will now conduct tests on a Tres Estados resource hole. What are the implications for a resource upgrade if the significant improvement in grade from the composite sample from Ema is translated to all the resource holes from Tres Estados?