Ann: Scale of Korbel Grows at Block D Estelle Gold Project, page-59

The spacing doesn't dilute (if by dilute you mean drop grade), nor enrich the deposit, per se. It does dilute our confidence in our modelled interpretation of the drill hole data. So, it's neither positive, nor negative, it's all to do with confidence. For instance, a wrong interpretation of the poorly spaced lower section, could result in the extension of a so called "in the grade" block laterally, that with further infill drilling may actually show doesn't extend so far. Or vice versa. Which is why rounding ofbthe grade average, for instance, to even the 1st sig. figure, is allowed for an inferred class resource. It's why quality resource estimation geologists are hard to find.

The good news is we have the highet grade material at the top, good commercially for a low cost open pit operation.