forming a base at 3.7c, page-7

Arvo gtsman,

Actually the report says the "7.0mil is to accelerate exploration".

ie: the majority of funds raised will be used to drill, drill, drill and more drilling, as per reading the asx release.

There was a short mention "to determine the feasibility of pre-resource production". Feasibility, not production, big difference.

re: Coffey Report 19/4/2007
"Coffey Mining Recommendation"

re point 3/ Coffey Mining made note that present drill spacing is wide and should be initially be concentrated in between existing drill sections etc. This was the most significant of their recommendation at that date.

Drill drill drill and burn up cash to try to get a reasonable resource up. Now downside does not worry about companies doing this as they have to so as to create and expand a resource. Unfortunately SML now have a large amount of shares on issue for the low jorc of 55thou oz Au. As I have previously stated I have no doubt that the company will continue to achieve high grade drill results, however take a note of (true) widths etc. All narrow veins which are rife in this area.

Please do not take that I am negative on SML. All I am saying as per releases that SML are going to have to drill a heap more holes over time to increase their resource of any great magnitude.

Cheers and good luck with your holdings.