Ann: Significant gold intersection adjacent to Wattle Dam, page-70

Tolga from what I've seen generally backs companies that have sound management and potential to deliver huge returns. He has due diligence capability that far exceeds that of most. He misses sometimes but at these valuations it's all about risk v's reward. BGL, AUT, SYR, DOR etc etc, his model seems to work.

MXR have some of the best exploration ground in WA, nearly 30km of the Spargoville shear zone that is known to host high grade gold. For context the Wattle Dam deposit which put RMS on the map spanned less than 300 meters of the shear zone. 600m to the south of this, along the shear zone MXR have the Redback discovery with a JORC of 440,000t @ 3.02g/t for 42,900oz Au, interestingly this is larger than the Wattle Dam deposit was thought to be when they first started mining it. Mid way between Wattle Dam and Redback in the most recent results they hit 3m at 83.3g/t. As a single hit it's not proof that they are going to make a large discovery but it does prove that the ground between is at least somewhat mineralised. It also gives validation to their exploration plan to systematically explore the shear zone.

As a refresh of the redback deposit it's worth looking at the historical drill results which proved up this resource.
- 16m @ 6.00g/t Au from 118m, including 4m @ 15.3g/t Au from 121m
- 9m @ 9.98g/t Au from 109m, including 2m @ 18.5g/t Au from 109m
- 20m @ 4.1 g/t from 195m including 2m @ 12.1 g/t from 197m
- 3m @ 17.5g/t Au from 95m, including 1m @ 33.5g/t Au from 96m
- 8m @ 9.29g/t Au from 208m, including 2m @ 20.1g/t Au from 214m
- 13m @ 4.22g/t Au from 89m, including 2m @ 16.8g/t Au from 92m
- 5m @ 8.96g/t Au from 186m, including 1m @ 20.2g/t Au from 190m
- 2m @ 27.3 g/t from 161m including 1m @ 53.6 g/t from 161m
- 7m @ 6.46g/t Au from 138m, including 2m @ 14.3g/t Au from 139m
- 7m @ 10.0 g/t from 109m including 2m @ 18.5 g/t from 109m
- 9m @ 5.0 g/t from 42m including 1m @ 15.3 g/t from 42m
- 3m @ 14.9g/t Au from 132m, including 1m @ 38.0g/t Au from 132m


The elephant in the room with MXR was always access to capital. Given that this region is known to host nuggety gold deposits there's an element of luck, they could find the mother lode on the next drill hole, they could need to drill 30km before finding the commercial deposit or they could miss entirely. Having an investor like TK come in and cornerstone the company validates their approach and by default will ensure that the company have sufficient access to capital to follow their vision. In Short TK's investment really is a step change for MXR.

I've overlaid the latest successful drill results below from the S5 target (S13 to the north missed), the pins show the location of the mineralised intersections. You can see the relationship to Wattle Dam and Redback. The white lines are the linear structures.



The second view is with the Kambalda Komatiite layer overlain (Wattle Dam host). You can see that there is a relationship between this unit and the gold discovery to date.



Zoom out and you get a sense of the scale of ground that MXR control which has shear zone contact with this Kambalda Komatiite unit. There's almost certainly a discovery there to be made, the question is when IMO.