Ann: Quarterly Activities Report, page-6

Yes the highlights are quite impressive.
It's a great Qrtrly in that it is very readable & pitched at shareholders not geos.

Good summary of progress. Couldn't be much better at this stage imo.

C1 announced 16/1122 & C2 on 23/1/23.
10 high grade intersections with an Average AuEq of 16.3 g/t

If that continues incl the 16.3g/t, then we are looking at a cash cow.

16.3 g/t is a little over 1/2 oz/t.
If they mined ore at the rate of 100k/T pa.

Then at 1/2 oz/T that's 50,000 AuEq pa.
Revenue @ $A2,500/oz is $125m/pa.

If MCOG are 3g/t then 13.3 g/t = gross profit.
That's 81.6% of Revenue = $102m profit pa.

No that's not a mistake $102m gross profit pa.

Is 100k T of ore pa reasonable?
Yes, Costerfield process 150k T of Ore pa.

So if these av AuEq continue, then a gross profit of $102m pa is quite achievable based on current Gold Price.

So if it cost say $8m to set up, thats small biccies compared to profit of $100m pa.

What to look for going forward imo is

1) Discovery of C3: would really prove the model re multiple C veins.
2) More high grade intersections to add to the "10" already found

3) Continued good/great grade averages eg 16.3g/t - makes for very high operating margins.

So it's a great Qrtrly imo, augers well for the future, summarises the past & explains the reasons to be optimistic.

While there is a bit to go, it is all substantiated by results to date & it seems the SP is starting to get a bit of a feel for that also.