What really excites me folks is the next stage of drilling. We...

What really excites me folks is the next stage of drilling. We have indications of chalcopyrite, bornite and pyrite in HWDD04. This is a great start. We should expect reasonable Cu grades from this. Anything close to or above ~1% Cu at a decent strike length would be a remarkable achievement for the first round of drilling.

However, if we hit Chalcocite in the next round of drilling, this could potentially be a game changer. Chalcocite is what provides the significant Cu grades and can help to define the core and mineralogical zonation of the IOCG system. The hydrothermal alteration in these systems can be complex and take time to understand. The next 5 drill holes planned around HWDD04 could potentially be company defining.

The distribution of individual hematitic breccia bodies partly controls Cu grades. However grades are also controlled by an important deposit-wide sharp interface between bornite and chalcopyrite that is broadly funnel shaped and in detail highly convoluted. Bornite-chalcocite mineralisation above the interface commonly attains grades of 4–6% Cu, whereas chalcopyrite mineralisation below the interface rarely exceeds 3% Cu (Reeve et al., 1990).

The well-established Cu-Fe sulfide zonation can be extended to include Pb and Zn; from the deposit periphery toward the center, the zonation is sphalerite → galena → pyrite→ chalcopyrite → bornite → chalcocite → nonsulfide (Ehrig et al., 2012).