Ann: High grade results from Hargraves South BNH , page-8

re: Ann: High grade results from Hargraves So... good question thejase 128,

The "problem" is something called the "nugget effect". In a very real way its not a problem at all, more of a bonus. Just as an employees can't always calculate the annual bonus, we can't be sure exactly how frequently and how large these nuggets of gold are. What we can do is look at the minerals and structures associated with high grade gold and use them as proxies. The gold is invariably in quartz, it is in association with sulphide minerals such as sphalerite, and with black wavy structures called laminae or styolites. If we use close spaced drilling to map out the proxies, we get a pretty clear picture of where the gold is. What we don't get is a clear enough picture of how much gold there is to produce a measured JORC resource from drilling and assays alone. However we do generally find some finer gold dispersed more evenly in the mineralisation. We can often quantify this and we can include some of the occasional high grade intercepts. My expectation is that this will allow a 5gpt inferred JORC resource to be determined at Hargraves. The "nugget effect" will likely lift average grades to 8gpt or beyond but the "nuggets are too sporadic to allow us to predict the entire quantum they will add to the resource.

I hope I have clarified the issue a little for you. There is plenty of info on the net. If you are interested, try googling "the nugget effect"