email from andrew munckton

Drilling of the Phase 1 program was completed in April 2011. We are still waiting for some assays to be returned from that program as the Assay labs are very busy at the moment.

However, the drilling returned to date indicated that the D Zone is a little higher grade and in places significantly wider than previously appreciated. That is likely to push the open pit design deeper all other things being equal.

Therefore a second phase of drilling will be required to access this deeper ore prior to completing the BFS.

Drilling of phase 2 will commence in august and continue for the remainder of the year.

The BFS delivery has therefore been pushed back to around March 2012 to allow this phase 2 drilling to be considered as well.

The project start up will probably be determined anyway by the environmental approval process and licence to operate which is scheduled to be received about the same time in Q1 2012.