ann: first drill program to test for silver mi, page-37

Hi again Happycats,

Here's my personal geological assessment of today's additional data, for what it is worth:

1. The gold story is looking a little tired now. Comparing today's map with the map and table in the 13 Feb announcement:

Today's geological map Fig. 1 now shows only six gold holes, marked 'drill hole Au' on the legend.

One is an outlier to the west and you can forget that one: CDP002 got 0.5m at 2.5g/t Au at 326m down-hole on Feb 13 - forget it!.

The remaining six drill collars cluster in a small area about 100m by 60m. Given the thinness of the reported gold intersections, there wouldn't appear to be any economic tonnage potential there.

There are gold drill hole numbers there going up to CDP025, but still we have only had assays on Feb 13 up to holes CDP009, plus the extra, negligible gold intersection that came out with the report for CDP021.

Of the others on this map that we have assays for, there is only CDP008 that got a negligible 4m at 0.35 g/t Au at 98,6m down-hole, and the one and only notable gold intersection CDP004 that got the nuggety 3.4m at 38.2 g/t Au at 151m down-hole.

No results have been given for any of the other holes, even though we know that CDP021 has been gold assayed and reported.

This suggests to me that even within that little 100m by 60m patch of 'gold holes' shown on today's Fig.1 most of the gold assay results after CDP009 were considered to be so low grade that they weren't worth reporting. And had any been of a calibre that could be deemed share-price sensitive, I am sure that they would have been reported, not least for compliance reasons.

It is also rather telling that three of the 'gold holes', CDP021, 23 and 25 have all been drilled from virtually the same collar location, attempting to target gold ore either in, or just down plunge of the main adit. If you compare Fig.1 today with Fig.1 of 13 Feb, you will see that 'Section 2' on todays Fig.1 (for which no cross-section is actually provided) is in just about the same position and orientation as the main adit. The section probably includes the underground mapping and sampling in that adit. These three holes, including the one that got the recent silver intersection, were therefore probably targeted on relict ore positions in that adit. The fact that there has been no gold reported for most of them suggests that the ore was either never present or had already been mined out.

So the original gold story is no longer intriguing me.


2. I do not think anybody would ever be mad enough to design and commence a very costly diamond drilling programme for this silver resource before they had received the silver assays from their first set of drill holes. So I can only imagine that the assays for the eight 'silver mineralised' drill holes that were previously analysed by XRF have been received.

The only reason that those assays would then not be released to the market would be if the results were considered to be so low that they were not deemed to be share market sensitive (although negative results are not necessarily insensitive results), or if they were considered to be completely unreliable, eg. because nuggety or native silver was thought to not be going into solution and giving falsely low assays, or because nuggety or native silver was thought to be giving ridiculously high assay values that could not then be reliably repeated by quality control sampling.

So they have gone ahead and commenced drilling either without the assays, or with assays that were considered to be so unreliable that they are having to re-analyse them by a different method, or with assays that are too low grade to be worth releasing but which offer enough encouragement to them to justify further drilling. Possibly the latter.

One wouldn't need to try and guess about these things though if the complete assays from the diamond drilling were released in total, as soon as they were received. But I think we are still waiting for the complete drilling assay results from the gold programme, never mind the silver, which given the vast expense of the diamond drilling and the significance of this gold project to the company, would have been very useful informative to have had.

The only reason that I am not a shareholder at this stage is because I have been waiting for confirmatory silver assay results from the other drill holes that have been identified as silver-mineralised from the XRF analyses. It looks as though I am going to have a long wait before I can make that informed decision though, so I am rather losing interest.

With regards,




(Do not act on anything I say. This is not financial advice and I am not a financial adviser)