Ann: AGM Address and Presentation, page-10

Hello All

All Directors/Secretary were present for today's AGM - that being Bob, Ian, Rick, Matt and David.

The formal part of the meeting was promptly dealt with all resolutions passing. Bob then passed onto Rick who went through the presentation. Both Rick and Matt were open to questions and happy to discuss whatever was put to them.

I will summarise as best as I can as this presentation and Q and A went for well over an hour.

Rick was asked why are you now only coming across these 1100 odd samples? They were basically in a computer file that as they were reviewing the data they came across. There is 700 gigs worth of data, so they are systematically going through it all and discovering new things all the time. As an example, they are logging all the data and references and getting a better idea of the geology of MS and the reefs like Stackpoole and Kennies (spelling?). (Rick references the presentation - bottom right of page 12).

You will note this is the one with an intercept of over 17,000 gT. Yes, it is over a small width, however they have something like a dozen intercepts at over 800 grams a tonne in that area. It is looking very promising and seems to be an extension of Whitelaws. Rick mentioned these intercepts are probably over an area of about 150m long by about 50m wide.

Matt was asked directly his view on the potential at MS. (It is apparent that he is pretty clued up about gold mining, especially the narrow veined stuff). He is quite bullish re the MS project. There are a number of positives – the infrastructure is primarily there and ready to go, permits are in place and a lot of historical data that shows 830,000 oz @ 26.5 gT has been mined. He said that if this was a greenfields project it would be very difficult to get up and going in this day and age, so MS a long way down the track. He thinks there is a lot more gold to be mined and wouldn’t be putting his time and reputation into a project that he didn’t think had major upside.

When asked about the MS tenement, both Rick and Matt believe that only about 20% has been explored/mined – there is much potential, however they need to do all the proper ground work first as they are conscious of the costs of mining and especially mining in the wrong place.

The time frames are fairly aggressive, however they are aiming to be “trial mining” in June 2017. They have reviewed a lot of MCO documentation and are fairly confident where and why the past mistakes have been made and remedies for same, hence the idea of pre-production mining to put these solutions in place and test it for 6 months before going to full commercial production. It seems to me with both these guys that they are measure twice and cut once people…they will release announcements to the market as they come to light, but it was reinforced at the meeting that SH’s want to be kept abreast of developments and ensuring that timeframes are kept. I am expecting that regular announcements will be the norm.

When questioned the situation with Norton, they are waiting on a few things to be completed – I think one of them is the metallurgical process and some other permits from the appropriate Government bodies. Rick believes Norton to still have potential, however when compared to the potential of MS believed that money is better spent there, especially considering timeframes to mining on both projects was similar.

All in all, it seems the Board and Rick and Matt have been working hard to keep MNM moving along. They all reinforced that they are conscious of the cash position and minimising costs as much as possible. They emphasised that a rule of thumb in mining that one metre of mining costs around $4k, so dig 100 m and that is $400k gone…so they are taking things steadily ensuring that when the time comes to spend cash digging…it is done in the right place.

I will also say that Rick seemed to be a lot more positive this time then when he was at the last meeting. I spoke with him after the meeting and he made a number of positive sentiments and that he felt in a much better position with the data and very confident with the potential of MS.


Cheers The K