*** not good news.... , page-4

good news.... for b2 Hi B2 - I am quietly confident SMC will end up with a major resource. It has moved around a lot - firstly all the exceptionally high grade intersections at Explorer - which broadened at depth -then the stunning Danielle and at least 13 km of high grade epithermal veins to test - now back to Soapspar which looks really gutsy. I have commented before they are like a kid in a lolly shop -they don't know where to drill next !

They are going to need the exploration funds- the gold market needs to be favourable for further capital raisings and they still need an ounce of luck -but I really can't see how Woolgar won't eventually be a major mining centre -even if it ends up that there are a number of specific ore bodies. I await a native title agreement on my ground adjoining -which has about 14 old mines that have never had a drill in the ground. And I note PNN bought a small mining lease north of Soapspar which was in their prospectus.

I did not realise BMO had no grid power -but I presume they will have at the Charters Towers mill. Would be no problem at the mine but if you are referring to the CIP plant then I guess that would be a bit costly. Nevertheless the grade is so high they should make a mint notwithstanding transportation etc. I guess they will report cash costs in due course.

You are right on the ball with the exploration upside - I have not got my message through to any geologists yet -mostly too busy - so you are way ahead of the pack in recognising the additional potential of more breccia pipes along the east west fault -which controls mineralisation. In terms of BMO I hope/expect their regional drilling will turn up another A309 or Lone Sister.Or large lower grade sandstone hosted gold systems. In terms of myself I have a 170 sq km EPM to the east on the fault -in the same geology -within 1.5 km of A309 and about 3-4 km from Lone Sister.

No approaches yet from Jim Wall -might put it in a new gold float -or the mountain might come to Mohammad !!

Cheers

TT