Ann: $6m Funding Agreement For The Sale of Kanmantoo Royalty, page-53

Our punt on HGO is looking more like an astute investment as the drilling progresses and resources increase and the very knowledgeable and informed Freepoint keep investing.

Given that since the economic study the measured and indicated resources are up from 3.7mt to 5.2mt its reasonable to assume that we can based on the latest MRE expect copper production numbers to be up from 36 kt to circa 50 kt without taking into account the spitfire drilling which is yet to be incorporated.

It's unfortunate that the MC51 didn't get anything like the 500m of decline sorted in the the time available.

I imagine given the use funds statement in the royalty sale announcement that we might see a plan emerge to extend the decline to access drilling platforms to further explore the kavanagh lodes to not only increase the resource but also the confidence levels and mine plan inventory to support funding.

We don't know how much of the last round of funding was spent but we do know we didn't achieve nearly as much as was anticipated in the Capital raising presentation.

There have been a few bumps in the road but the destination is looking brighter and getting closer.

Nice to see the copper price steadily trending back up.

Looks like the weak hands that the announcement flushed out and were folded might have been exhausted. The opportunity to buy low might be short lived.






“The opportunity at Kanmantoo continued to grow with the compilation of the Kavanagh and
Nugent drilling programs which added a further 1.3M tonnes to the Resource base. As this
information is brought into the mine plan it is expected that the mining inventory in the Stage 1 Mine Plan will increase. Furthermore, over 5.2Mt of resources are now classified as either
Indicated or Measured (up from 3.7Mt), which materially improves the geological confidence of the resource estimate that underpins the Stage 1 Mine Plan.