Ann: Drill Rig on Site amd Ready at Fraser Range South, page-39

1. Nickel Exploration at Crux and Centauri
   
   A total of 22 reconnaissance diamond holes has now been drilled to test a small area of the Crux intrusion along with three diamond holes into the Centauri target (see Figure 5, Table 1).
   
   Results received during the quarter included the best results to date. Key intercepts include:
   
   
   •  0.65m @ 1.04% nickel, 0.42% copper and 0.03% cobalt from 556.2 metres, and 15m @ 0.27% nickel, 0.06% copper and 0.02% cobalt from 657 metres in SFRD0523 (Crux), and
     
     
   •  3.7m @ 0.37% nickel, 0.08% copper and 0.06% cobalt from 279.7 metres, and 2m @ 0.27% nickel, 0.06% copper and 0.02% cobalt from 286 metres in SFRD0606 (Centauri)
     
     The holes drilled to date together with the detection distance of associated DHEM collectively cover less than 5% of the target area. Drilling is continuing and down hole EM (DHEM) has been completed on all holes drilled to date with no conductors identified as yet.
     
     
     My conclusion is that there are nickel traces all around our two conductors... Which SIR have failed to find. Seems more than likely to me, that we will hit nickel ... To what degree is the question. Our location ( 2 conductors) are prime targets .