two from the parrotman

I emailed PM earlier this week and he has repsonded as below wanted an earlier correspondence posted in full

Enjoy

Morning Peter,

Did adh008 and 009 drill from the same pad as 007?

Cheers

PM responds

8 is drilling 70 degrees to the SW about ¾ of the way along the trace of hole 2 ( to try for the higher grade zone probably associated with the structure/creek).

Hole 9 is same pad and drilling 90 degrees off to the SE – actually down the trace of hole 2 towards its collar at 70 degrees. Should be finished by end of week and will shift back to pad one and drill 90 degrees off ADH 001, about to the NNE targeting a strong infill gold soil anomaly, plus strike extension of hole, 1 etc

Cheers peter



Did the bit below get posted?

· Sorry this took a while. Yes you can communicate it if you wish. It is always risky communicating with shareholders, but it is something I believe in (as possible) – hence this email. I note that this is not financial or any other form of advice.



· I’m just out from the Andewa site this morning (couldn’t get out yesterday due to heavy rain) after giving a site visit to ‘interested majors’. If nothing else this becomes an ‘I’ll show you mine if you show me yours’.



RE resource estimation etc.

· No -you can’t define a resource from just those 4 holes on pad 2, but you can get a good idea of the potential and size of the system in that region and direction. Each hole had mineralisation so I would infer that the entire block will be mineralised in some fashion. The specific gravity of the rocks (Density) is probably about 2.7 (2.7 tonnes /cubic metre) (most porphyries are about 2.6 to 2.7 depending on sulphide content and hence ‘extra weight added’, so if you estimate the defined volume and multiply it by 2.7, you get the approximate tonnage. Grade could be done arithmetically with the holes in question to get an idea of that. Note this is an idea only.



· If we had a vertical hole on pad 2, then it would be a bit closer to allowing a resource estimate, but ASX /JORC demand more confidence than that also. The holes all start at one point which doesn’t give us much info near surface , but is a very cost effective and logical way for us to evaluate the potential and various areas fairly rapidly. For a resource we would now ideally start to drill parallel or sub parallel hole etc. on a regular grid basis. Each hole on pad 2 is at 45 degrees and traverses about 285m horizontally and vertically. The tonnage possibly indicated by the cube made by the ‘pyramid of drill holes is about 1M tonnes /vertical metre, if you assume 300m for the hole length, then the cube is 600m x 600m x 300m deep, times 2.7 SG = 300 million tonnes at whatever computed grade you use. Please note that this is very rough, but is a valid way of ‘having a look’ at what we might have.



· What this tells us is we have an awful lot of tonnes possible so far at variable low/moderate to low, but consistently gold anomalous grades. The system has now been shown to be highly fertile by the drilling, has excellent depth and lateral extent where we have assays for etc. and this shows the upside of the system.



· As a base reality, the system is consistently mineralised, so you could reasonably extrapolate the mineralisation for each hole in a 25m radius of the collar giving a 50m diameter cylinder around each, for ‘visualisation/ estimation’ purposes only. This is about 1.6M tonnes for each hole at whatever grade of the entire hole.



RE Capital and burn rate

· At the current spend rate (including starting to run up 2 more big rigs early January now as we can’t barge them to site for another 10 days or so), I estimate we will have about $1M left by say Sept 2012. The burn rate should remain similar to recently which is NOT reflected in the apparent burn rate from the quarterly reports etc. (we purchased 4 rigs, about $1M in drill rods and spares, 2 dozers, 2 excavators, 3 crawlers, 2 trucks (all used) since we raised capital to allow us to hit Andewa hard and as fast as cost effectively possible). We have enough drill bits, spares and consumables to drill for another year or more. We have just got rid of the helicopter for rig shift and support, as our dozers are now onsite and at the drill pad. This is an excellent accomplishment for us and will reduce our costs (but they will increase also due to starting up 2 more rigs – this is mostly personnel, assaying and camp support costs now.



· I am confident we can do a lot of work/drilling with the remaining capital. I have no intention of burning too rapidly or leaving it ‘too late’ to raise more capital, but I don’t anticipate raising capital until the share price is back where it should be way above 25c. My recently granted options are priced at 19c I believe which is a long way above the current price, so I have lots of incentive apart from my 9million odd shares to get the price back up and locate a viable deposit.



· Having said that, FNT are used to functioning below $1M but the market doesn’t like it much, nor do I.



RE deposit type, future assays and potential

· The market hasn’t appreciated the drill results to date very much, but I am personally very pleased with the initial results. My peers and several of the majors all believe we have done a brilliant job so far - I hear laughing from the Hot Copper website, but that is the reality of the situation, regardless of what day traders (and others who think they know more than they really do) believe. Very large and low grade gold –copper porphyries are the new deposit type being sought and developed around the world. I was at a conference (NewGenGold – biggest most recent gold discoveries in the world) last week and this was pounded out as the new reality. Both out holes 1 and 2 were better than several of the discovery holes on these mega deposits! We definitely have one of these at Andewa and the question is – where are the higher grade zones? – that is our task now.



· I should have the assays for the bottom of Hole AFD004 at Andewa in 10 days perhaps ? It takes a week or more after the gold’s come (and I don’t have them yet), but the samples have been at the lab for 10 days or so now. Hole 5 assays will arrive progressively later (the samples arrive at the lab (as shipped by boat) in batches, but it is painful to release partial hole results , so In don’t and won’t in general.



· Hole AFD 009 is at about 200m depth now and hole 8 finished at about 410m.



RE Interest form other parties

· Newcrest left site with me this morning and Barrick went out for the second time.



· Goldfields is going in mid-December and I will also get a few others hopefully and they can see if they are interested in the project or not.



· I am not specifically seeking a JV but am evaluating interest and options given the possible/ world situation next year.



· So we have attracted a lot of attention, even if the share price is tragically falling in line with everyone else or a bit more etc. Unfortunately we have had a lot of turnover from a few previously substantial shareholders and that has driven us down.



RE Tasmania

· There is no defined plan for the Tasmanian deposits as yet. We are evaluating possibilities including toll treating, but need to finish up the pre-feasibility work prior to really knowing what we can do. We will regardless be in a position to apply for a Mining Lease next year after we re-estimate the resources etc. etc.



· Stormont drill results should be out on Monday if I can get the email working here again. The last lot was excellent and is definitely improving the deposit and its potential variability.



RE OTML

· OTML assay results – timing is yet unknown but probably around mid-January as they are just now getting the last samples from hole 1 off site and to their Tabulbil base for sample prep prior to air freighting them to QLD for analysis. I had hoped to get to Esis to see for myself this trip, but that was not to be in the end for various reasons. There are two rigs operating at Esis now.



· Bulago drilling is ongoing on a porphyry target, but they must drill 5 holes at then high grade Suguma Zone prior to late May 2012.



· Aeromagnetics may still be flown this year on the Central and East New Britain ELs, the required (specific) helicopter availability is very problematic right now and it was ripped from them a while back, but now they may have sourced another so,…….. who knows. If not it will happen early in 2012.