General discussion, page-6364

A lot of our MRE will likely be in the inferred category due to the large spacing between holes of 100 - 200m. To get higher confidence levels of indicated and measured we need to drill it to swiss cheese, that's just the way the JORC guidelines system works.

We have much closer spacings in the North East with the X pattern drilling, but the results from there will only apply in the immediate surrounds.

I'm not expecting any huge SP boost from the initial MRE as a lot of the time on these junior explorers it disappoints posters on HC. However over time with infill drilling the JORC tends to come up to what people initially expected, every extra hole with mineralisation builds tonnage and confidence levels.

I'm expecting an announcement, possibly before the MRE about an extended drill program, showing with more clarity where the 'extensional' drilling will take place, along with where a lot more infill drilling will take place. Perhaps it will be announced around the time of MRE.

Most people don't understand how kriging works in MRE estimation, with the 'confidence' level of what's in the ground diminishing as you go further away from a drill hole. Where we have 200m between drill holes, at the point in between, 100m away from any drill hole, the confidence of any 'ore' is near zero, depending upon the continuity between holes in terms of grade and depth etc. It's calculated as a gradual decrease away from the hole, then gradual increase after the halfway point towards the next hole. (I hope that made sense).

Often by the time they have finished drilling an ore body as large as ours there could have been several hundred thousand metres drilled, which means many more holes than we already have. Every extra drill hole takes away some 'guestimation', and the whole JORC process is about 'sciencing' exactly what we have and not making guesses on what we can't see.
I'm pretty confident we are going to get a lot more holes at the appropriate time, as deemed by management..