:: AEX ::, page-2

iZLUSH, when last I rang there was only one rig sitting at Wingellina and it was not being used until the next round of drilling.

I doubt we will get more drilling results in the quarterly report because even if they commence the next round I doubt there would be time for assaying.

Priority drilling target is infil and extended oxide drilling to prove up a 500,000,000 tome resource at average 1%, which makes it a highly saleable asset. To date this figure has been
"indicated" by existing drilling, but to meet with the required JORC code for "proven" more infill drilling is required. To date only 124.000,000 has been proven to JORC code.

A feasibility study is being conducted, but will not be completed till the Dec quarter. To be economically viable, 50000 tonnes per annum at a cutoff grade of 1% are required. To date the proven resources have this figure for a mine life of >20 years, which is highly desirable. As you can imagine, 500,000,000 tonnes will make it one of the worlds most sought after strikes.

Nickel sulphides would set the market in fire. However, sulphide strikes are rare and although included, will not be the prime target of the next round of drilling. The budget allows for 2 million on extending oxide resources and half a million on drilling for massive sulphides. We can hope for massive sulphides, as WMC has discovered them in close proximity, but I would not be investing on that basis alone.

Because I'm not expecting anything significant to excite the market this quarter, I'm sitting on the fence at this stage. There may well be a further easing of the share price, although it seems to be sitting pretty stagnant atm. The June report will be interesting.

I believe Nugget is still on holidays overseas.

Hope this helps, and good luck.

Bomber