Ann: Quarterly Activities Report, page-42

I had a decent read through the original commissioned independent report on Mothae which formed the basis of our mine study etc. 

Interesting that we started at the South East domain as I have pointed out previously, it’s the smallest bulk sample, and was the lowest grade and average price per carat domain. Key takes;

- South East domain was tested as the Bulk Sample 1 (of 3), and the only Bulk Sample 1 which made the JORC. The methods used in this sample were poor (eg. No x-ray circuit and other flaws), and this reflected in the average grade returned of 2.8cpht using a low cut-off. 

- Independent expert believes the South East Domain should*** be of a similar grade to the South Central domain at 4.9-5.1cpht. The South Central Domain was bulk sample tested once better equipment was installed, reprocessing methods and auditing was initiated, hence, much higher grades. 

- South East domain modelled at 6.79mt of the 38.96mt JORC, so 17.4% of current JORC material should be 4.9-5.1cpht, not 2.8cpht. LOM are working off a 1.9cpht grade, but that’s using a 3.00mm larger screen then what was deployed during bulk sampling. Essentially... we’re going for the larger stones, and cutting out the small crap. BUT if we’re averging 3.9cpht with the first 70,000t... using a 3.0mm screen so it does raise question like;

- During bulk sampling security was hired to monitor works. After hand sorting diamonds at CW11, a security official transporting a box decided to take 9carats of diamonds... which were recovered! But our independent expert doesn’t see this as an isolated incident. 

- Lots of diamonds were broken during Bulk Sample 2, a process that was actually better than Bulk Sample 1 (South East domain). To try and recover as many diamonds as possible they reprocessed material, hand picked and did other means to try and get an actuate grade reading. BUT they broke/damaged 37.5% of stones when the material was put through the scrubber 2x... (was tested on 40 stones). No stones were broken when put through the scrubber only 1x... in both cases 5-7.5% of the 40 stones were lost, 5% when scrubbed 1x. And 7.5% when scrubber 2x. So the value of stones were lower as they were damaged in bulk sample 2... and the real value should be higher as we have deployed better equipment and sorting technology today. 

- We have 77.4mt down to the 500m level, but JORC is only for the first 300m, so 38.96mt. Grade and price would need to be pretty good to go down that far... a huge cutback would be costly and timely, so too underground mining. Not feasible IMO. 

All in all... a good read! But we need to run things for a Quarter to see the true Mothae colours. Our full feasibility works off a 3.00mm cutoff, and average grade of only ~2cpht, yet the plan was quite profitable. If we keep hitting 4cpht, and average value is good... then we’re in for a fun ride.