Ann: Retraction of Scoping Study Announcement of 24 June 2014, page-16

Hi Parcs,

Your comment made me go and read the original announcement and you are very right. IMO LMB have been a very naughty, not just clumsy.

To use an exploration target in a Scoping Study would not meet industry guidelines and pretty much says that the study is a Concept Study only. To be a Scoping Study you need to achieve +/- 30% accuracy and that is impossible to achieve if you are working with an exploration target.

I have no problems with companies taking a fast track approach and doing this type of study, but they have no place in the sharemarket ASX release arena, irrespective of the number of cautionary statements made. They should be an internal document only.

As far as I am concerned this is a major red flag on the management team and board of the company and suggests there is not an experienced hand somewhere in the LMB team to set the standards at industry levels. (P.S. I have seen this happen once before and the project was built but shut down within 1 year)

Cheers
Gosouth