Ann: Gold Potential on Abernethy Shear Zone, page-7

Well, it was a brave hole. The Kingswood area of the Abernethy shear zone has grades of ~1.5g/t at ~55m, so, not great to start with. There are some better intersections. The hanging wall of the intrusive tonalite is seen to be enriched - but that was not recorded on this hole as that section coincided with core loss. The structure of the brecciated felsic zone is promising, and the mineralisation is interesting, but just so minimal, and at 120m is beyond our focus on open cut. Deeper mineralisation along the long and well-defined Abernethy strike would be great, but with limited cash to define or exploit it, I see this hole as a bold, but unlucky, attempt to build a bigger picture.

MEK have been having better luck, which is leading to a near-term decision on re-starting their milling operation. This in turn may provide an opportunity for a collaboration with OAU. MEK have a report due for in September (when we run out of cash). Looking at MEK's scope and grades i am not optimistic they will need a partner.

So, it's all up in the air at the moment. OAU is conserving money, one 2" hole and a 2 month wait for assays is economy mode for sure. A nervous time in the OAU board room I'd say.