Ann: Quarterly Cashflow report - December 2020, page-8

These are impressive numbers:

Holes drilled in the December quarter: 911
Kilometers drilled in the December Q: 82.7

The $15.3 million spend in the quarter will go a long way to producing a JORC 2012 compliant indicated mineral resource as well producing a pre-feasibility study which is also needed to produce a public report on the ore body under the JORC Code clause 29. I am guessing that the drill intercepts for the March quarter will also be needed to produce the mineral resource estimate as well. I am hopeful that the June quarter drill results and assays will not be needed. The need to include the June quarter results would push the maiden resource estimate out to September if the June quarter and that would be very disappointing for many investors.

We haven't seen the assay reports on all of these holes. In fact, we have seen assay reports on only a small percentage of these holes. There will be no shortage of announcements coming during the cyclone season despite interruptions to drilling with a backlog this huge. The ore body has to be drilled out to 40 x 40 grid and given the size of the ore body there are lot of holes needed to get that sort of a profile over the whole ore body. I would not be surprised to see that by the time the maiden resource estimate is due for release it will only cover a percentage of the property and much more will be left to drill out. This may be significant. Would the board focus on the area that might be likely to be the initial pit in a multi stage pit development. That would make a lot of sense to me.

What might we expect to see after the maiden resource estimate is released? There are three things that I would hope to see. The first thing that I would like to see is the company deciding to focus some drilling to produce a 20 x 20 bankable feasibility study that would convert a mineral resource into ore reserves for the starter pit. The second thing that I would expect to see is that every quarter the mineral resource will be expanded as more and more assay results are returned on the drill holes produced to date and the new holes that are drilled. The third thing that is in the pipeline is the exploratory drilling at other prospects within the tenement. To me the exploratory drilling on new prospects is the icing on the cake of a very promising future producer.