Ann: Quarterly Activities Report, page-6

This is a good report, what I was anticipating. Funny how it was sold down before the release. A shame the motors arent in-place, was thinking they were turning up mid April.

We are in essence now tapping into the higher grade Tarcoola Ore and the Challenger Deeps. I did a bit of an assessment of the deeps grade a while ago, copied in below for interest.

There development grade was ~3 g/t for this quarter for the deeps. Good chance of them meeting their target of 21koz + for next quarter and continued AISC decline based on the activities hitting Tarcoola and Deeps high grade targets (M2 has an average grade of 10.9 g/t).

Dredging this up for those who havent seen it before, I posted it a few months back.

"Good statement in this announcement, should add to the success in finishing out 2018 financial year as they mine out Tarcoola higher grades and the 115 level of Challenger Deeps. I am not expecting this coming quarter to be amazing, it will be the fourth quarter which will shine as the M2 lodes and Tarcoola high grade deposits will be mined, aswell as the mill upgrade completed (April target).

"Waste development on the 115 level has been undertaken allowing development to target both the M1 and M2 stoping areas with the M2 S2 R development drive now entering the high grade ore zone. Both ore and waste development will continue with the first stoping of the M2 S2 limb scheduled in late February. Decline development is also progressing with the Jumbuck decline scheduled to reach the 95 level in late January"

For reference, the M2 lode has the highest average grade of all the deeps being explored in Challenger.

M1 grades are just above a 3.0 g/t cut off grade for underground mines, at an average of 3.73 g/t, with 56K contained ounces (4K measured, 30K indicated, 23 K inferred).

M2 grades range from 7.42 to 13.78 g/t with an average grade of 10.90 g/t and 160K contained ounces (23K measured, 98K indicated, 39K inferred). See announcement : Challenger 30 June 17 Mineral Resource Ore Reserve estimate -WPG (29/9/2017).