Ann: Peak Mines - Chronos drilling update, page-13

First round of drilling, and results announced 3 months after Peak takeover finalised. Faster than a speeding bullet! 16 holes, 2 abandoned before target cos of difficulty. 13m @ 8.6g/t Au and Pb/Zn 30%, 77g/t Ag...and 10m @ 1.9 g/t @ 30% Pb/Zn, 58g/t Ag. The nuggety nature is reflected, as are the two different strike zones. So the Net Smelter Return ranges from around the $400 mark to as high as $900 for the gold rich zone (Au priced conservatively at $1605). That will do nicely thanks. Further drilling at Chronos to "delineate 1.6m/t resource". So Chronos provides 22% of the feed to the mill, milling at an annual rate of 541,000 t/a. So That's 130,000 tonnes annually from Chronos. Extended to 2 years whereas in April it was 6 months, then in the quarterly 1 year. How much of the 1.6m/t will finally pass through the mill when this is open to surface?...Remember, the drilling only targeted the next 50 metres. A few more holes above this 50m and another 130,000 tonnes defined and we have yet another year of Chronos. Perseverance drill results will be interesting when they come out too. Eight days to months end...we must have around $100 million in the bank by then. Each month add $30 million... $130 million, 160, 190, 220, 250, ..heck, in a year's time we could have a market cap of $430 million @ 50c a share, sitting in the bank in cash. 97% gold recovery is awesome. Will have to work on the base metal recovery circuits. Fixing this will increase recoveries from the current 75% to say 90% which is easily achievable. The two effects are increasing revenue from base metal sales, and increasing mill throughput to around 600,000 t/a or above. Maybe then we add another 5 mil a month and go $135 million banked, 170, 205, 240, 275, $310 million in the bank. Might take longer than that to get the circuits in place but you get the drift. Roll on the north pod too.