Ann: Strong Results Continue at Mt Alexander-SGQ.AX, page-14

Greetings team,

I was not able to attend the conference but was fortunate to be able to speak with John and he also replied to some queries I had regarding Mt Alexander

These were:
I understand that the SAMSON technology was developed for high conductance ore bodies such as Copper and Nickel sulphide deposits.

Do you expect the use of this system to provide a clear picture of whatever lies beneath the surface all the way down to a certain level or if there is a conductive source at one level could it still mask any potential deeper mineralisation? Excuse my ignorance but can it see through granite?

1. SAMSON – yes, it will see through granite. The survey is also designed to see past shallow conductors so that we achieve the deep search required. We haven’t used SAMSON before, so we will see if it delivers as promised.

With Mt Alexander, you must be happy with the acquisition of tenement E29/954
Is there any survey work that has already been carried out that may indicate either an extension to the east of the cathedrals shear zone (through E29/548 and 954) or the likelihood of a parallel structure to the north or is this all new virgin surveys.

1. E29/954 – the Govt mag data suggests that the Cathedrals Belt does extend into E29/954. We need the high res data from our upcoming airmag survey to better assess this. The same applies to parallel belts to the north and south. We can see structures on the Govt mag that suggests possible repetition of the Cathedrals Belt.

Gold Bunny - I have "stolen" the images you posted back in May after the Sydney Resources Conference showing the major ENE gravity structure which is on the eastern side of the Cathedrals shear zone (and which increases interest in the new 100% St George tenement E29/954 which is directly to the east)

Also on that image you show the major NNW trending gravity structure (which is what aligns with Johns comment below regarding the surveys for the Western Ultramafics)




I recall Tim saying at the Sydney conference that the upper 800 metres or so of the Western Ultramafics looked quite prospective. Will this other survey you will be doing include the Western Ultramafics or is it proposed to survey the area to the west of the Western Ultramafics

1. Western Ultramafics – the main Mt Alexander Belt and the area to the west are included in the new airmag survey. We definitely think this area is ‘live’ for a significant deposit (or two).

I know that Mt Alexander will still be the near term Nickel focus.
Do you have any further clarity on timing of a Windsor drilling program?
Is it likely that Samson will be used at Windsor also (and does the introduction of Samson mean that other prospects such as Desert Dragon and Cambridge for that matter will be revisited for deeper surveys)?
Is it more likely that Windsor drilling will be between Mt Alexander drilling campaigns or does it just need to take a back seat altogether for the timebeing?

1. Windsor – we are reviewing Windsor right now, including whether SAMSON could be used there and at Desert Dragon.

Regarding the East Laverton gold prospects, knowing that assays will still take time to come through and many many more holes need to be drilled, is there any update coming regarding the type of structures that have been encountered at Ascalon and Bristol?

My understanding was that the significant Platinum and Palladium intersections indicate intense alteration presence.
Do you have any comment on the significance of the high levels of PGE's at Ascalon?

1. Gold at East Laverton – the Ascalon area continues to look like a “textbook environment for gold mineralisation”. Final assays should be out shortly.

I re-read the annual report recently and noted that Balmoral had popped onto the East Laverton map - is there any significance to this appearing now - have there been other types of survey works carried out that indicate additional prospectivity there.

1. Balmoral – no new work has been completed here. The past work supports gold potential, and we will go back there soon.

Notes regarding todays announcements
I was very pleased to see the metallurgical test work showing a very saleable concentrate - It is one thing to discover a resource but the metallurgy needs to stack up also.
What I am certain most people are waiting for is the evidence of the larger deposits in this area where we hope Samson will assist in proving clarity - and should the parallel ENE trending prospects that have been alluded to turn out to be be present there is a very good chance that helmenesh's description from his earlier posts of a web of small and larger deposits spread throughout the tenements are a very good chance of being realised - in my discussions with John I was very pleased to hear that "though the drill bit has to provide the confirmation the expectation is that St George would be very unlucky not to find at least one or two significant deposits in the Mt Alexander area alone.

Regarding Windsor and Desert Dragon - going back to the Sydney Resources conference again and the high level of confidence that Tim Hronsky had (with both Windsor and Desert Dragon) it will be very interesting to see if Samson is used there also - and what it reveals at depth.

I also don't think that John will be too disappointed if Ascalon turns out to be a Platinum resource rather than a gold one but it's hard to go past words like "Ascalon area continues to look like a "Textbook environment for gold mineralisation"

It is good to see that there is plenty of money in the kitty for the significant survey works and subsequent drilling campaigns which will stem from them.

I am glad that Cobber321 and LiveEagle7 (and hopefully many more shareholders) were able to spend time with John and see first hand what quality management we all have looking after our interests - when I spoke with John yesterday and sincerely wished him every success at the conference and for the campaigns ahead his immediate response was "Every shareholder is important no matter how large or small a holding they have"

Cheers to all
IO