Ann: Appendix 3B and s708 notice, page-19

Perhaps investors/traders should take a bit more time to read announcements in future.

1. What were these 4 holes targeting and why ?

Assays received from four holes (APR-DD-114 to 117) testing for gold mineralisation in the breccia zone adjacent to the Cascada copper deposit

The four holes tested the breccia up-dip and to the southeast from the original discovery hole

Yes would have been nice to find more gold but as been mentioned previously, the area is complex that will require further drilling to define overall.

2. What are the remaining outstanding six holes targeting.

The final six holes of the program tested the northeast (four holes) and southwest (two holes) strike extensions of the high grade central zone of the Cascada deposit. Visual results from the drill core indicate that the strike length of the Cascada deposit has been extended to approximately 250m, with the mineralised zone remaining open along strike to the southwest and northeast and down dip to the northwest. Assay results from these holes are expected within 2 weeks.

These holes are targeting the copper part of the deposit with visual confirmation in the holes although it doesn't say for all holes.  I expect these results to be on par of what we had in the past.  

The drop in SP today was basically from short term traders who were disappointed in the results. I say short term because those investors are not interested in the JV which ideally is for long term holders.  Also note that the next assays are expected in two weeks. This means there is a good chance that they will be available after the 19th September - which is the cut off date to participate in the rights issue.


So my advice is that if you were going to purchase more shares in the rights issue, then you would be better off buying them now while they are sub .03.  Personally, I'd expect the SP to hover around the .03 mark until the end of the rights issue.

These remaining assays results will have no impact in the signing of the JV. .

For me the remaining assay results are really academic. The end game here is really the JV with Rio and finding the major porphyry copper deposit.  The Cascada deposit is a nice fall back option that we have in case Rio decide to walk away from the JV.  We don't know if the current deposit is economical to mine by the results of the JORC will give us a better idea.