Aircore drilling gold SBM, page-2

okey dokes.. Just spoke to Chris expl manager. Great news and absolutely not what I was expecting tbh..

So gold wise we are 200 holes through a 500 hole A/C program which is going really well. SBM have conducted a magnet survey over a big portion (he might have said all!) of our tenement package on a 50m by 50m spacing. Chris said this was in large part because gold road had found this the best targeting strategy for their tenements. Read cost savings and effective implentation of the best strategies! (All costs have been met by the J.V partner as per the deal...

Chris took sometime to point out the obvious fact that SBM are a big player, looking to comprehensively and properly explore.. this is a growth strategy for a company with 400mill in cash looking to expand.. as opposed to a small cap player looking for instant headline grabbers. Didnt say we havent hit anything, did say SBM wont report things which would be otherwise mkt sensitive for us.. Basically he said we need to check SBM quarterlys for annoucements here. If SBM release a material annoucement regarding our J.V on the gold then we will aswell. i.e - we dont control the news flow..

Watching recent mkt activity around say RIO on Winu, (didnt release results to mkt even when they were building an airstrip) I wouldnt hold my breath on SBM releasing anything.. why would they??

But hell, this is good news. The J.V exists and SBM are doing exactly what they said they would. Also we get the data on the Paleo channels for nada.

On the Potash front work continues and Chris mentioned that their have been some big ticket items crop up such as bore holes to drill- I guess checking that JORC compliance.. this made me nervous, because next question you are probably wanting the answer to is do we have enough cash to complete the DFS as stated??

Yes we do...

Chris went onto to state that 1.7mill has been spent on corporate cost mgmt fees wages etc since the begining of the year. Contrast this with another coys expenditure of 7 odd mill since the start of the year and a coy at basically the same stage as us and ....... I guess he wanted me to join the dots.

I think he might have been talking Kalium lakes, but he didnt name names.

I didnt ask about SO4 potential tie up and negotiations which I should have..

I did ask about potential offtakes and progress on that front. Chris mentioned that Matt had been to China twice this year to further the MOUs currently in place. We have some MOUs here in Australia also (I think he mentioned, Ill check that -), anyway couldnt discuss that stuff commercially sensitive but positive none the less.

Finsished with some general convo about funding.. Chris suggested in a general sense that around the time of DFS sophs take more of a look and could be a source of potential funds. Also that offtakers can choose to take a slice at this time also.. (above was chat in general manner).

I hold SEI and this was certainly the case their recently with Cronimet taking a piece of the pie.. With gold on the rise and our pitiful mkt cap we certainly fit the criteria perfectly..

All in all I was positively frothing, and feeling pretty pumped going forward.