Ann: Exploration Update - Drilling to Resume this Month, page-42

If he thought he was sitting on another invincible with the results todate surely you would drill those holes required to prove that concept? Not go off and test other targets. Given the budget don’t you drill your best holes first?

With gold it is all about the plumbing system (ie the fluid pathways, where it has come from and how it is accumulated) . So called feeder structures are more often than not barren of gold as the fluids have passed through them and then deposited elsewhere. It is usual for the first order structure to be barren with gold in the second/third order structures. Bit like flushing a toilet bowl really and the water leaving the main channel and eventually being fed into a sewerage farm. Big deposits often display signs of multiple flushes. Smaller deposits occurring in other traps along the way.

Higher grades are likely to be structurally controlled in areas that were dilated during the mineralization event. these areas can include intersection points with other structures and/or lithologies. The invincible model is based on the gold bearing structure/s crossing over into the finer grained sediments causing both a drop in pressure and a chemical change that causes the gold to be deposited. large deposits may occur at depth where two structures intersect. For me it’s always understand the structures and follow them.

Wrt the vertical v flat interpretation, there is likely to be both. partly due the change in orientation as the cross over different rocks and partly due to the stress regime being applied. As more pressure is applied the rocks start to take up the strain/stress by fracturing in multiple orientations. Certain orientations are more favourable to dilation than others and hence more likely to be mineralized.

The flats are tensional gashes/ links that are smaller in size but have maybe very high grade. Again this is part of his model. It is likely at this stage the more they drill the more complex it initially will be to determine the grade distribution. Eventually of course there hopefully is a eureka moment when it all falls together.