40c, page-19

Hi Heph,

i like to be reasonably unemotional about it all and call it as i truly see it.

When they applied for a ML at San Jorge and lodged their SAA I was told by a number of people on the ground that they were the wrong landowners and the MMB and Mines Dept would not approve it. But they did.

I myself never thought they would have the ML approved at San Jorge because in my view they simply didnt have the paperwork done to comply with the act. They could not show that it is feasible mine as they had no estimates or feasibilites . But it was approved and has stayed approved. So i was and am surprised with this. But its happened.

They have been trying to get an SAA at Kolosori for the last 6 months and it has obviously been a hard slog but they have lodged it. They have announced it and some further details are in the Island Sun today. So there is no question it is lodged and in the SIG pipeline.

There are lots of rumblings about whether the correct landowners have signed the SAA but i don't take too much of that onboard anymore to be honest because it is just an endless sh#tfight between landowners and that is a way of life it seems.

But they have lodged something and i think its fair to say that the SIG do want this progressed and the answer to all their problems lay with approving the PL because then the PFS is live again and any questions about feasibility and financing get swept aside IMO.

The ML at San Jorge isnt that exciting by itself and its no wonder the SP didnt react because there is nothing to work a SP value from. ie no numbers or grade or resource size etc. No matter how pumped people were about getting a ML it was emotional only couldnt be reflected in the SP because there were no numbers. for anyone to run a ruler over.

But as soon as the PL is granted at Kolosori there are instant numbers because the PFS is already done across the two sites. Thats a re-rate event. No question.

I never thought they would procure an SAA. But they have. If they have all the paperwork lodged i think the SIG will support it and just get it out of the way. The argument about the correct landowners can be fought down the road.


Despite my extraodinarily low opinion of Axiom management, business is business and this is now edging towards a buy for me.

I wouldnt hold it long term as i dont have any faith that RM and crew have the capabilities to build or run a mine. BUT i do now think they will get that PL and the company will be re rated. I also do think they can negotiate an Offtake and finance. Thats what he is good at no question.

interesting to see what happens next.