Ann: Primary Nickel and Copper Sulphides Confirmed at Mt Ridley, page-54

A lot of hype so far over very little. The petrography results show only trace nickel and copper sulphides, much less than 1%. The Ni assays are considerably higher up to 0.56% because it was collected from the transition zone of oxide to fresh rock where leached metals from silicate and any sulphides often accumulate as supergene enrichment. Significantly the ends of holes were lower (unlike the early Sirius results). The very important nickel to copper ratio was declared to be 2 to 1. The elevated copper is particularly important in economic Ni - Cu systems. It is at around 2 to 1 at Bollinger in sulphides and around 4 to 1 in the oxide zone and deposits such as Voisy Bay are similar. In all Ni exploration in WA the elevated Cu is always looked for.

Serious problem with MRD is that the ratio quoted appears to be completely wrong. The best was MRAC 020 at 0.56% Ni (5,600 ppm) and 421 ppm Cu, a ratio of 13.3 to 1. The rest were up to 100 to 1. Oops.

It is not uncommon to see traces of Ni and Cu sulphides in many mafic intrusive systems in WA that never produce significant Ni sulphides. There was even a discovery in this Frazer Range area in the late 1960s in pipe structures with nickel and copper sulphides at higher amounts than Mt Ridley that was drilled but never came up with enough sulphides. When Sirius announced a new Nickel Province was found after Nova - that was also incorrect due to the 1960s discovery Unlike Nova, MID targets 19 and 20 did not present TEM anomalies but it's not clear if they were surveyed (if surveyed and if they have massive sulphides they should light up with TEM anomalies).

So far it does not stack up at all and looks more like yet another example like so many before it in WA but worth doing more exploration on as the drilling etc is still early Given all that we can anticipate a large capital raising asap but will the directors show bad faith in selling of stock to catch a falling knife before it falls further? If they believe it themselves I suggest they won't sell but on technical grounds I don't think the results so far are very good at all. It will be interesting to see what they do next but it does not look like a buy to me.