Ann: Annual Report to shareholders, page-14

This post started as a Devil's advocate view on your post but evolved into comments on the EIS hole and some other comments.


Glass half full? Half Empty? or Engineer's view - waste of glass above half full?

Good report.

What I (we) want to know cannot be in the report: What the drills are going to hit at Grace, Hackney, etc!

Good chance they will get something but what? This is the biggie that probably exists for all exploration companies at this early stage of a project.

PSL are standing on the shoulders of past explorers who took deposits to an interesting stage where some resource was apparent with local good grade hits BUT for some reason the "old timers" walked and left it for someone else. While it is great to see the high grade hits NCM got at Grace/Bemm's ( someone else at Hackney's etc) I try to put on blinkers and not see these extending to the MOHO. I hope they do BUT - drill as they are at Grace and soon in NSW.

The visuals from the EIS holes are interesting if inconclusive.

• No apparent explanation for the magnetic model? [Reminiscent of Rio testing IP further north in the Paterson where and 800+m hole was "too shallow". Back to the drawing board.]
• For PSL The presence of strong alteration, veining, pyrite, brecciation, and granitic intrusives at depth is encouraging . Assays pending will be about Au rather than Cu which was not mentioned (as noted by another poster).
  
  Treat annotations with care and DYOR.
• IMO good to see a felsic intrusive rather than a large mafic body where the magnetic inversion model was postulated. Intrusion related gold deposits (not something I know much about) are being touted as significant for the Paterson post Havieron (and before).
• Veining, pyrite, alteration correlating with the Grace/Bemm shear - good. Gut feeling it didn't look "juicy"except for a few metres in around 220-223m as highlighted below. Massive pyrite veins, in sediments look good, but seldom carry much grade. The quartz-carbonate-pyrite+-breccia may be more interesting but are not volumetrically significant. The main cross cutting Qtz-Carb veins may or may not carry Au - IMO probably not but hope I am wrong. [Blue lines are rough bedding to core observations.]
  
• I was a bit disappointed there were no collar details. Enough that I tried to phone the number listed on the website only to find it was connected to a location that didn't seem related to PSL. ?? what that means.
• The Sentinel satellite imagery shows a site with work beginning between the 7th and 12th of September. Reported complete by 30th so an average of around 40m per day. Transferring a satellite hole location to Google Earth commonly gives a +-10m set of coordinates when compared with finally announced data. If the site seen on Sentinel is in fact the EIS hole there are coordinates and topographic information to confirm the location as being reasonable. IMO it is some 300m ESE of the location shown on the plan in the announcement. Apologies for being such a pedant on this. It will be confirmed in due course.

Carried away, as usual. Really should be on the other thread about EIS.

One thing it does show is that even at this stage of drilling, without assays, there is room for both enthusiasm and despair.

Good to see alteration veining brecciation sulphides intrusives but if their is no gold or other goodies a real downer. The market seems to have taken the latter view if the decrease in the SP is any indication albeit during an overall negative market trend.

Exploration teams need to be eternally positive with announcements to match. We know that statistics are generally against this level of enthusiasm but the reward for success. Ooh lah lah - bring it on for PSL and others.