Ann: New gold projects double GBRs Meekatharra footprint, page-15

In February GBR announced the maiden resource estimate for the Side Well Project. Since the maiden resource estimate, 35km of drilling has been completed at a cost of about $5M. As a result, the company now has an updated MRE as shown below. Looking at just the 'Open Pit' type resource: at Mulga Bill, we have about 350,000 ounces with about 50% in the 'indicated' category at a grade of 3.1 g/t; and at Ironbark we have about 100,000 ounces with nearly 90% in the 'indicated' category at a grade of 3.7 g/t.

What I don't understand is why some of the capital which has been recently raised (the result of GBR management's very generous placement to Collins St Asset Management, Zebina Minerals and Lion Selection Group) isn't being channeled towards a pre-feasibility study.

When the maiden MRE was announced in February, the share price was about 14 cents. Since then, GBR has announced several exceptionally high grade drill intercepts and delivered a significantly improved MRE. Against the backdrop of all this great news, we watched the share price decline significantly. So, I wonder how the share price will fare if the drilling campaigns at Saltbush don't deliver the high grade hits we saw at Mulga Bill, and the company is not commencing any economic studies until the magic 1M ounce resource is reached.