G'Day SJB G'Day SJB -Note under what you highlighted states...

G'Day SJB

G'Day SJB -Note under what you highlighted states visible gold in UN assayed half of hole CDP002 just gives
emphasis of free gold effect, no deception though as can be seen in the context of the actual
release further below.

December 13th 2012.
Correction to ASX Announcement,12 December 2012:Hits of up to 193 gpt Au confirm mineralisation over 620m down dip further to its announcement of 12 December 2012.
Orinoco Gold Limited (ASX: OGX,“Orinoco”) advises that, due to an error in the calculation of the weighted average grade
of the composite assay result reported in hole CDP 004, the grade reported tothe market was materially understated.
All actual intersections reported in the results table contained in the announcement are correct, however the composite of the intersections announced on 12 Decembe rfor hole CDP 004 was 3.41m @ 21.76 g/t of gold.
The correct figure should have been:• 3.41m @ 38.29 g/t gold.Orinoco apologizes for the error.

So your right SJB in saying its the weighted average of the composite over 3.4 mts -though their was 193 g p/t over 0.66 mt ,
inclusive within the 3.4 mts stated -lifting the average over a thicker interval .

Though their is no deception intended as can be seen in the actual Announcement
Asx 12 th December 2012-The company makes it perfectly clear
Quote-It is important to note that the primary objective of the drilling has been to establishthe continuity of the mineralisation
over the 620m down dip extent of the structure,which has now been achieved, and along its 500m strike length (see Figure 2).
Given the vein hosted, coarse high‐grade nature of the gold at Cascavel, Orinocoviews drilling as a tool to demonstrate continuity of the mineralisation while grades,which as these results show, are likely to vary significantly across the mineralisedzones and will probably
"NOT be accurately represented by drilling".

The Company believes that bulk sampling delivers a more representative sample ofthe grade at the Curral de Pedra Project.
A recent one tonne bulk sample taken fromhistoric workings along the 500m strike length returned an average grade of 22gpt
(see ASX announcement dated November 21, 2012).

So its clear ATT -drilling done to establish continuity of mineralisation .
While grades which as these results show, are likely to vary significantly across the mineralised zones and will probably
not be accurately represented by drilling.

Can't be any more upfont than that -Can't JORC as drilling will be highly variable hit & miss -even when hit results are not considered reliable reference of resource due to coarse gold free nugget effect & could be higher or lower when mined & processed .

We have been experiencing the lower due to the combination effect of dilution of in situ gold grade while extraction occurs & this is common though excessive due to the narrow nature of the veins targeted for mining & a processing plant with a reported recovered gold captured in the 30-40 % -range & significantly down on what one would usually expect in the 60%-75% range.

So what now -we are informed that the processing plant has been tuned & recovery by percentage is significantly higher 80% in concentrate. ,
What that translates to post actual smelt 60 % 65% ? likely- its higher non the less.

Dilution -As you are aware the mestre zone has always been of interest though we are report ably at level 7 -we need the vein to be wider & even better if its in conjunction with the grade p/t being higher ( mestre has been bulk sampled prior & report ably much higher g p/t) -when you cross reference much of the data Re Silver intersections ( very close to current position 20 mts or there about ), Mestre & the Tinterio faults very close also report ably intersect Cascavel - mineralisation convergence with separate faults & fluid pathways some Primarily Silver -existing primarily Gold , another with Multi-elements -read it as you will though- No JORC resource assurances .

IMO personal view the J.V. - with Anglo exploration appears imminent & could finalize in the near term, just can't see Anglo committing to the exploration J.V. without also committing to a J.V with Cascavel at a latter stage as they both potential J.V.'s are imo in cascade together, as should Anglo commit to the Exploration J.V.-with CRH having security, then they- Anglo must be unperturbed -hence they have confidence in Cascavel's turnaround as Cascavel becoming cash flow positive annuls security concerns with CRH regarding them Anglo spending up to 7 million
USD over 3 years ( regardless Q if they can withdraw at any stage as its standard clause in J.V. contract )-
Can't see Anglo committing & then withdrawing as their are many advance targets as i have given references to in recent postings.

Risk is high though there are positive indications that have to become reality.
All the best SJB
imo glth
salt