Ann: Quarterly Activities Report-MOD.AX, page-17

@Scarpa

You've missed out the following from you're list.

1. They no longer see a northerly running fault between holes 10R & 11R. So they have had to re-draw the shape of the deposit to fit the assay results achieved, ie from over 30M in depth in 11R to just 4M+ in 10R (which are some 50M apart). As DDH2 (drilled in the opposite direction) intersected part of the deposit between those 2 holes, its un-assayed findings have been taken into consideration as well.

2. Somewhere between 11R & 10R is the highest point of the deposit on this Section (although they reported that 18R [200M to the East] encountered the mineral bearing zone at just 20M depth. They are now going to drill 25R @75M South of 10R in that same Northerly direction.

I'd say it's findings could be significant, especially if the deposit continues to that point, is located deeper than the 4M section in 10R, is thicker in depth & has a higher grade. Yes 4 big if's, but they obviously see merit in doing so even now.

3. Sulphides seem to have been preserved even at just 20M depth thanks to the calcrete layer.

4. They feel confident enough to step out another 200M North of DDH3 on this main Section for DDH7. A bold move, if successful then the deposit will have a width of over 525M (if 25R is successful its over 600M wide, but the grade & thickness of 100M of that might not be economic)

5. RC hole 24R has been drilled as a 200M step-out to the West of 23R.

6. If you look at Figure 5, DDH2, seems to have encountered a Cu zone nearer the surface (outwith the UMS) which doesn't appear to have been found in any of the other drill holes (looks about 6 - 8M in depth). Watch this space.

7. They seem to be saying the UMS is the Cu bearing deposit (with both Sandstone & grey/green siltstone sections occurring) LMS on the otherhand has transitioned to Zn/Pb being the dominant metals encountered.

I'd refer you back to slide 9 of the LSE presentation, where you have the 3 rings & the current drilling location. It would appear the CU mineralisation ring occurs on top of the Zn/Pb ones. As they step out, it will be interesting to see what transitions (moving to the West & out of the Zn ring, moving to the East & out of the Cu ring).

LOTM