Grade is King, page-4

Hi ecker

The thing to notice about the deep hole is its orientation [fig 8 in the ann]....if the geology is somewhat similar at depth to the first 200m's then that drill orientation will not be running at 90 degrees to any veining so very unlikely to provide accurate information about the grades. The important info is the structure is mineralised almost 1km down.

This drilling campaign has been all about getting enough data to complete a DFS for an open pit to the first 120m's. The best bit of info, imo, is the Northern stockworks (NSW) is mineralised in-between the dolerite [hosted in sediments]. Probably far too soon to comment on the possible economics but if that part of the geology had been barren then open pitting the NSW might have been a marginal operation due to high wastage... but if the grades are OK the whole thing is possibly a bigger version of the Southern stockworks.

In a few months time, it looks as if we will have the MRE [for the first 200m's], a pit design and an optimal grind size for the milling. It does seem the Co is intending to go down the path of toll milling... in which case this project will come into production fairly quickly and for a very limited capex. There's a few years of profitable mine life ahead just with this [probably making money from day 1]... with major unanswered questions about grade at depth providing upside.