Ann: Large Scale Copper-Nickel Prospect Identifie, page-21

re: Ann: Large Scale Copper-Nickel Prospect I... Colesy I am not a geologist but I think I can answer your question in my laymans terms

175ppm of copper is 175 parts in 1 million parts (by weight) of the total sample of calcrete (pricipally calcium carbonate) so in an expession of concentration in a surface sample only and is equivalent to 0.0175 parts in 100 parts or as a percentage 0.0175%. Similarly expressed as a percentage the nickel is 0.033%.

MEU's results are from the surface sampling program in the prospective area. Looking at SIR's figures, they are from core samples from the discovery drilling which is completely different story and so not comparing like with like. SIR's results are from specific identified drilling targets areas where you are more likely to hit cross-sections of the actual mineral resource so you want to see these sorts of concentrations.

You cannot compare the two as the calcrete suface sample is always going to be far more diluted with calcium carbonate and other "dirt".

The surface samples and the mix of different minerals however are a very good expressions of what might lie below or in the near vicinity. It is what result from millions of years of geological events, weathering, run off, leaching and capillarity from the source mineral deposit which may possibly have been exposed to these elements at some time.

Experts tell me that deposition in calcrete is very significant and sampling calcrete has become the most succesful method in the Gawler Craton for discovery of gold and base metals. The relatively high concentrations quoted are of a level that tells the geologist that there is probably a nice copper and nickel deposit nearby. The Electromagnetic data in association with the sampling dictates where drilling should occur. Using the different drilling methods (RAB, RC and diamond) the geoligist can hone in on where the deposit is.....to make the "discovery". However, it is still like finding a needle in a haystack.