announcement, page-6

To me there is an important significance to the geo lingo in the last announcement.

Porphyry systems are widely accepted as having distinct alteration halos around ore. Four zones called potassic, phyllic, argillic and propylitic exist in most systems. This is well researched and documented and characterises a porphyry model of mineralisation. This is still taught today in economic geology and was taught to me in SA.


These zones relate to each other in terms of depth and closeness to the core of the system. Importantly they also relate to the occurrence of economic grades. These zones have distinct mineral assemblages. In each zone there are certain minerals that define each zone which are easily identifiable (chlorite is green potassic feldspars are pink)

Peter describes widespread propylitic alteration overprinted with potassic alteration. Potassic alteration is usually associated with the best grades. Its quite a confident description of where the drill is in relation to the alteration and to where we are in the system. To me this is not directed at the punters and its not a ramp. It directed to geos with little regard to the punter. I dont know why.

The announcement is a bit cagey in relation to the presence of copper mineralisation and moly and over what extent mineralisation occurred.

If grades arent that good it will be a very important hole in working out alteration extents.

From the descriptions given so far I think we may be closer to the diorite model of a porphyry system. These systems, as suggested with hole one contain significant gold with lower Cu and Mo.

The major discovery announcement shows propylitc alteration cut by potassic alteration. Phyllic and argillic have been minor or absent and magnetite is common which is characteristic.

Meanwhile the share price is terrible and there is no guarantee on grades. Hole one really is very good and theres good evidence of more of the same. It didn’t look very good though. The idea that this is an enormous system has not yet been disproven. A large complex volcanic crater complicates things, as does obvious structure.

We are spending 250 grand in Tassie on more geophysics (go though the old announcements and see how much we have spent on this) Why would you do this instead of JORC compliant drilling around hole ADH001? Would be a good question to ask.

The last Ok Tedi announcement was very good and it looks like they have a pretty good idea of whats going on plus ending in ore. Plenty of potential there.

I havent sold any but I think the money I spent to help out Andewa at 23 cents should not be spent on a chopper in Tassie.

I think the share price reflects small holders jumping out and the fear of capital raising before any really good results come out.

We own our drills and equipment so if you run out of cash you still have some value as an explorer plus the joint venture value. So this does look well oversold.