Ann: Quarterly Activities Report, page-74

From what I saw there was a little bit of Chalcopyrite starting at 44m and strengthening in grade to say 1% + Cu at 500m. The key to what they're saying is it is like the highly mineralised Q10 system at Alpala. It's 3 Km away from Alpala. We don't know how much ore will be there but it is likely to be meaningful say one years production. The cut-off grade will be important and that depends on Cu price at the time. It's a straight forward economic calculation.

What it may mean is that you have to drive a decline 1KM deep, to get to that depth you have to go say six km on a decent gradient. If you knew there was a mineralized pod at 500m. Why wouldn't you put you decline in so as to access that Tandayma pod at 500m so you could go 3 Km in one direction to Tandayma and 3 km in the other direction to Alpala. There are also another benefits. Firstly you get ore much earlier at 500M down that means you cash flow starts much earlier and you can start servicing capital earlier and increase project IRR. Also you can try out (optimise) your plant on that ore.

I saw a lot of this happen in the mining schedule at Carapateena. Where they waited say 2 Yrs form starting the decline to first ore processing a the plant.

Also in this case it's where their tailings dam would have been so that it'll have to be re- located. No-one is going to put any part of the project over ore.

Tanks for asking the question. I hadn't though it out in those terms before form the hints. Note all of this is what I'm gathering from the info provided they just have to do the work to prove it up.

That's my take IMVHO.