the bond hole, page-9

Hi Karmalocust,

I can't help much in predicting where the gold is. Its more complicated than I thought. I thought DDH003 was going to be the best yet. It seemed to follow the shoulder of a conductivity or chargeability anomaly for a longer length compared to drill hole 2. It also ended up going into a conductivity anomaly at the end of the hole so I was expecting good grades for the 1st half, then to drop off a little and have better grades again towards the end. That's why I was a little disappointed with the hole, and obviously folowing shoulders is not a sure thing.

The geophysics show a general distribution of metals, (conductivity/ chargeability) and they clearly show 3 separate circular features in showing the metal mineral distribution in the Komsen, Ehgin and Ekhos prospects. The colour contours in a simple form can indicate different zones of alteration around these 3 bodies. So far the shoulders in the light red, orange zones have produced the best gold grades, but hole DDH003 didn't follow that pattern.

Another observation is that gold in hand trenching has shown reasonably good correlation with gold grades in the upper oxidised zones which have been drilled so far.

The resistivity maps show the rough inverse of the chargeability. It also can delineate clay alteration and sometimes epithermal mineralisation which can be very deficient in metals.

We also know that the geology is comlex. The main features are these 3 large mineralised systems but whats happened after the initial mineralisation is complicated and there may be some post event that contols the gold mineralisation. Its obvious that there's many types of igneous rocks, and faulting. It's very difficult to call anything, only knowing what we know.

DDH004 will geophysically be a shorter version of DDH002 but ends in a resistivity anomaly whereas conductivity was increasing towards the end of DDH002. I haven't checked the trenching results just above this hole.

DDH005 I was expecting better results than average because it follows a shoulder more broadly like DDH003 but I'm not so sure after seeing the results of Hole 3.

DDH006 follows broadly along the side of a shoulder. Hand trenching there also which I haven't checked.

DDH007 goes directly into a shoulder and penetrates deepest into a conductivity anomaly. Trenching above this one also. Trench 14 between the 2 drill pads must have produced something special if the new focus is there.

Geo work at this stage is hard detective work. As new evidence comes to light the picture gets clearer. I hope we will see some more insights into the mineralisation in the next announcements. PM has worked with similiar mineralisation before with the Kodu deposit.

Ari