Ann: Bombora Underground Study Opens High-grade Potential, page-3

Looking forward and strategic here. The first two years OP will more than pay off any mill unless that is not needed due to GL1 and sale of 20% share of Manna. They will be "on the ore" (5m deep - 10m deep at worst) in a day of stripping. Up front capex should not be too bad as they plan to stage cutbacks. So the startup may be cheaper and smoother than normal mines in WA these days. That ought to put a premium on BRB shares once all this is settled and on the way.

Tom is at diggers now. It is clear they plan to get into production as early as possible. He had promised this would be a mine and that promise will be kept. Timing has been off a few times in the past but that was old news until the unexplained delay of this UG study.

Heck this study shows the early part of the Tura lode makes OVER $50,000,000 per year at A$2700/oz (gross). The cost of extraction and processing is only A$1,100/oz = nice, very nice. In production; this alone would justify a market cap of circa $250M yet this will only be part of the annual production rate.

This study is a fraction of one of 8 lodes for testing, planning and optimization over coming years to add to the LOM and profitability of this mine. It will be watered down by lower grade OP ore going through the proposed 1.8Mt mill. Another way to look at it is that Optiro are conservative (very - and good I only like upside surprises), and that this will lift the head grade at the mill well above the remnant OP ore once the north end is exploited. This is preliminary and based on Inferred not Indicated which means the conservative nature of the estimates are appropriate. What else is down there in the depths below this pit??

Can you see the picture forming here? A pit leading to multiple ore sources with attractive grade to feed a large mill. A long life mine with scale in the hands of an undervalued junior. Can we keep hold of it? Where is gold headed in the meantime? I believe that gold has a strong near term and even stronger future. That is based on a lot of research but it has to remain a thesis at this stage until proven.

They are encouraged to proceed with more UG studies to add to the future ore supply at costs below OP mining which are generally considered on the lower end - provided the mill is adjacent, the strip ratio is modest and so on. I could see the 1.8Mt mill being modular as a larger than required crushing circuit is installed upfront and space allowed for additional tanks. The future of this mine will be UG with satellite deposits providing additional feed. Mind you 1.8Mt PA is a nice size and it provides plenty of options to match the apparent district scale of this landholding.

They are building something large here. One would not build a skyscraper on an inadequate foundation. Slow going but moving in the right direction if you can wait. The nearer term path will accelerate more obviously now IMO. It is not a funny car however; more like a Morris Minor until it gets to a nice big hill.

Enjoy the return to much higher levels of interest in an improved market segment over time. I hope to be able to dig far deeper into this story some time this year. I have followed it long enough to have some qualification to do that and would be pragmatic. A field trip and long discussions in the office about the scope of the gold camp is required. There is nothing like one on one time.

GLTAH CW