Ann: Half Year Accounts, page-9

Hi All,
Sorry I have been absent recently. I have had my own issues to deal with.
I have only just read the half yearly fully now, and there is a lot to like in there, albeit the JORC is delayed by a further two weeks. Perhaps this will give accumulators extra time to shake more from nervous holders? However, we have had two new substantial holder reports in two days. So someone is happy to take a position …

A few take aways for me below:

The progressive increase in drill density continues to upgrade the continuity of gold mineralisation, an aspect that significantly de-risks potential mining. Good continuity of the mineralised structures is now obvious between cross-sections and in long section over the full 2.2km of the main discovery zone where 40m x 20m resource drilling has been completed.

40x20m = indicated category

I’m a little surprised that that 40x20m has been completed over the whole 2.2km’s as that was not the indication I was given previously. In any event, if 40 x 20m has been completed over the whole 2.2km’s, I’d say get ready for a freaking big initial JORC! (Side note: Algo … your prediction may be right!)​

The continuity is defined by multiple, stacked, steep NNW-trending mineralised faults with “linking” flat and west-dipping mineralised faults that are also stacked.

The presence of multiple mineralised surfaces (steep, flat and west-dipping) in a consistent geometry upgrades not only the open pit potential but the resource potential at depth, an aspect reinforced by the presence of high-grade reconnaissance intersections 150-200m vertically below surface. The potential to mine underground is highly significant as it has scope to add multiples to any shallow gold inventory constrained by the economic limits of open pit mining.

Results
Highlight intersections received during the period include
27m at 12.37g/t gold from 120m in
cluding 13m at 24.48g/t in BBRC0644;
20m at 3.29g/t gold from 140m including 16m at 4.06g/t in BBRC0452;
14m at 4.23g/t gold from 95m including 3m at 15.65g/t and 7m at 5.2g/t from 117m
including 5m at 7.03g/t in BBRC0379;
24m at 2.24g/t gold from 132m including 7m at 4.29g/t in BBRC0390;
44m at 3.87g/t gold from 60m including 13m at 9g/t in BBRC0487;
9m at 35.88g/t gold from 131m including 2.88m at 108.55g/t in BBRD0675;
24m at 3.12g/t gold from 36m including 11m at 6.33g/t in BBRC0689; and
36m at 2.78g/t gold from 8m including 8m at 8.01g/t in BBRC0694.

The resource drilling is also starting to identify more previously “hidden” west-dipping lodes that are orientated sub-parallel to the drill orientation and are therefore difficult to “see” – eg. 24m at
3.12g/t gold including 11m at 6.33g/t gold from BBRC0693 on the 6601960N section 2. These have scope to augment the ounces per vertical metre in any mining scenario.

Two rounds of metallurgical test work undertaken in the period indicate no metallurgical issues and point towards low-cost gold processing. Excellent results for gold recovery were achieved in both oxide material (96-99%) and fresh rock (97-99%) at a relatively coarse grind size of 106-125μm which indicates low energy consumption and hence low operating costs.

The metallurgy results also indicate sound potential for an early, low-cost (Stage 1) development option that doesn’t limit the potential scale of operation arising from the high gravity gold recoveries obtained in the test work …Tails from the gravity circuit which would normally flow to the “back-end” of the plant (the gold leach/recovery circuit) would flow to storage ponds for later reclamation once construction of the entire plant was complete (Stage 2).

Anyway, we may get one more batch of assays early this week. I was originally thinking that we would go into halt pre JORC this week but obviously that won’t happen now.
Perhaps also we will hear of the hydrology results?

I just get the feeling that the spring is about to un-coil. The delay may not be received well, but I have faith in Tom that the short term pain will be worth it. Good luck to accumulators, don’t give them yours! I sincerely believe that our faith will be rewarded.

All just in my humble opinion.

Best regards,
Perdy