Ann: High Grade Copper Gold Assays Extend Nugent Mineralisation, page-29

Interested to hear folks talking about low grades and high cost.

It seems there is a complete lack of understanding that a low grade mine is a low cost mine.

One can learn a lot reading the detailed notes in mineral resource releases.

The only grades that are ever reported by the competent people who calculate cut off grades are the ones that can be mined and processed at a price less than the return the miner gets for the cocktail of metals that are produced.

For a mine to be able to make a profit out of mining low grades it has to have very low costs.

The fact that HGO can cut off the high grades that fund the mine development at 0.6% and the stopes that only need to fund the stope mining and processing costs at 0.4 % means it is a very low cost miner.

The fact that it has very substantial exploration targets while just scratching the surface means that it has high grade resource potential.

For those into the detail you might see some close simillarities to HGO in the following slides. Seems they end up with very similar average grades that make the GRADE.

Normally $900 for 6 get it today under wraps for $ 210