Ann: Diamond Drilling Underway at Mt Alexander, page-187

Greetings Gracie and gc2016

My sincere apologies for staying off the radar and failing to post over the last few months. Whilst I am improving slowly health-wise, I have welcomed the slow progress with SGQ to reflect on the company’s direction and came to the conclusion that due to the geological nature in the region; the focus has to change from an approach of shallow near-surface exploration philosophy to a search for deep-seated targets which are very time consuming and expensive. I think SGQ have realised this and proceeded to pursue these targets with the use of the seismic surveys.

Whilst I have used geophysical techniques extensively during my career, I am not a qualified geophysicist and therefore cannot comment on the merits of the seismic surveys the company is carrying out. Major mining companies use seismic to compare seismic results from major sized orebodies with results of peripheral seismic anomalies. SGQ does not have proven mineralised structures to which they can compare the 450m anomaly the seismic survey threw up. In other words, to go from the known to the unknown.

I will agree with ozblue and mulac1 however that 3D surveys may prove more reliability in the result interpretations as 2D really sees one vector. If I am not mistaken, the seismic surveys will result in a better definition of stratigraphy and lithology, but it is known that we have intrusive ultramafics in a granitic or porphyritic regime comprising this structure. I’m sure SGQ has its reasons for doing seismic, but I would have thought electrical geophysical techniques would ultimately offer better returns for their buck.

I would now guess that the 450m structure will be drilled with a hope and a prayer that it contains economic sulphides tucked in one of the swells along the - dipping/plunging - structure mentioned in Sandy’s reply to ozblue. I imagine that this will be used as a mother hole to optimistically fan out drillholes into other anomalies along the 450m. structure. Otherwise, the exercise will have to be repeated elsewhere.

The question arises whether SGQ can really afford this sort of exploration and the reason why I backed off from commenting in recent reporting.

I wish all our friends on HC well and to everyone a very happy festive season.

Cheers,

Helmenesh