Ann: Capricorn Southeast Manganese Drilling Updat, page-18

re: Ann: Capricorn Southeast Manganese Drilli... it's just a visual interpretation of the dominant sedimentary sequence. Manganese oxides are replacement in nature so at some point do you call it mostly manganese oxide or mostly shale, really its all still shale just with lots of manganese oxide in it. When the grains are so small that it looks uniform they call it "massive". How much Mn enrichment has occurred prior to it getting into the sediments of the shale will determine it's grade. You could have fairly low grade "massive deposits" or very high grade shale embedded deposits - it's the grade which is more important. The presence of massive deposits in the sequence somewhere tho gives them a clue to the type of deposit they're dealing with (very encouraging to see it) but the money could well be in the Secondary enriched detrital deposits or the laterite hosted deposits. None of it is really straight Manganese - at best you might get 60% replacement.

Visual inspection also a poor judge and subjective - the lab will find the good stuff for us and these initial drills will point them in the right direction.