Ann: Exploration Update, page-286

True Rob, if people want to sell just as DM1's drilling program hits high gear, that's their issue.

Meanwhile, Desert Metal's drill team continue to drill into the enormous Irrida Hill conductors and nickel inventories on the London Metal Exchange continue to fall each week. We should begin to see $US20,000/tonne ($A26,750/tonne) nickel price in the next 4-5 weeks.

London Metal Exchange: LME Nickel









The advantage for Nickel Copper sulphide explorers with a rising price is as follows:
.
1. At the current Nickel price of $US18,370/tonne ($A24,359/tonne), a drilling intercept of anything above 4 metres @ 2.5% Nickel is considered high grade, anything above 4% Ni very high grade.

2. If the Nickel Price climbs above $US20,000/tonne ($A26,516/tonne), a drilling intercept of anything above 4 metres @ 2% Nickel is considered high grade, anything above 3.5% ultra-high grade.

3. If the Nickel Price climbs above $US25,000/tonne ($A33,145/tonne), a drilling intercept of anything above 4 metres @ 1.5% Nickel is considered high grade, anything above 3.0% ultra-high grade.

I'm looking forward to seeing the drill core visual updates on Irrida Hill, as well as EM surveys for the 10+ conductors in DM1's tenements and an update on the downhole EM survey at Innouendy.

When you take into account Desert Metal's current market cap compared to other explorers below, the current market cap of Desert Metals, is significantly undervalued.

I'm looking forward to seeing the next Drilling Program update from DM1.



PUR
MC (fully diluted): $63M
SOI (fully diluted): 1.2B
Top 20 hold: 38.67%
Directors hold: 3%
Prospects: Phil's hill (1 elongated anomaly), Sovereign hill (nothing concrete so far), Ablett (2 anomalies)
Progress: Geochem, airborne EM, some ground-loop EM
Thesis: Chalice nearology, no real validation as of yet

MAN
MC (fully diluted): $63M
SOI (fully diluted): 517.5M
Top 20 hold: 41.78%D
Directors hold: 0.93%
Prospects: Newleyine (3 anomalies), Tolarmo north and south (4 anomalies)
Progress: Geochem, airborne EM, some ground-loop EM, some historical drilling
Thesis: Chalice nearology, no real validation as of yet

CPN
MC (fully diluted): $70M
SOI (fully diluted): 70.5M
Top 20 hold: 61.09%
Directors hold: 10.7%
Prospects: Yarabrook, Avena, Ovis, Aries, and 6x XC-# anomalies.
Progress: [all things listed for MAN & PUR, as well as...] Three diamond drills, assays pending. One showed disseminated sulphides and two hit some narrow-moderate widths of massive copper sulphides.

DM1
MC (fully diluted): $27M
SOI (fully diluted): 67.3M
Top 20 hold: 62.56%
Directors hold: 29%
Prospects: 8-10 discrete anomalies at Innouendy and Irrida hill, >10 discrete anomalies at Breakaway and Dingo pass, 1 large + strong conductor at BeleleProgress: