Ann: High Grade Copper & Gold Intersected Out From Altan Tolgoi, page-4

What size might this project be?

I have been following this XAM from day one, when gophers were the main exploration tool being employed. A lot of money was raised and expended with not much more to show than the gophers did.

This is Xam's first project that really appears to be competitive.

The previous owners of the prospect never found the pipe that you would expect to have fed the surface mineralisation. It is quite amazing when you look at how many holes have been drilled there. But then the same company took over 150 drill holes to find Oyu Tolgoi, I guess the flat terrain and lack of rivers / river beds makes these deposits hard to work out from surface exploration.

The mineralisation reported today goes deeper than anything found before as far as I can rememeber, and suggests the drills are getting close to or are in the pipe. In terms of tonnage, a few step out holes like this would soon take the TARGET from the 250 million tonnes published to date to more like 500 million tonnes. And chance would suggest there are higher grades waiting to be found which greatly sweetens the deal.

What are the chances of this being a profitable mie?

There is enough low grade tonnage already well defined at surface to be encouraging. But will enough new tonnage be found between these seemingly independent pods of mineralisation starting from surface, and the deep stuff reported today, to make an open cut to 600 metres and more feasible. That is where the high grade appears to be. Keep in mind that 1% equivalent copper in an open cut mine would be very very profitable. But in a bulk underground operation it would be marginal unless very large tonnages are found and mined. A lot of drilling will be required to prove that.

No doubt the drill reports will keep coming through thick and fast, Mongolia desperately needs a game changer.