Ann: Exceptional Gold Recoveries Confirmed at Butchers Creek, page-15

The only way Butchers Creek can be viable is to do a deal with Pantoro (PNR) to toll mill (or merge) these resources at their processing plant at their Nicholson mine site. To date the resources are sub-commercial to build a new plant and too far from other processing facilities to cart; we have to do a deal with Pantoro. Really can't see that we have gained to much with the latest metallurgical results (but I guess we had to do them) since the good recoveries were already known from the prior mining operations in 1993/97. Agreed that the next step at Butchers creek is to do a resource/reserve calculation to JORC standards but we already know that it's likely to be sub-commercial right now. The Nicholson plant is small so it may need further investment to process Butchers Creek - the only other alternative is to do more drilling o prove up more resources on our tenements to get a commercial resource/reserve (at least 1Mozs) and then build a plant; that's high risk. IMO the Nicholson (Pantoro) route would be preferred.