Ann: Resource Growth Potential Confirmed at Colina West, page-48

Today's news was great for a number of reasons (best results of the entire last 13 months in hole 77, Colina in-fill showing better than JORC grades ec) but something that may have gone unnoticed is that holes 73 and 79 at the northern end of Colina West both had respectable hits meaning the pegs remain open to the north. Hopefully the next holes 100m further North at Colina West also hit pegs, as it would add to the extent of the strike.

Hole 77: Incredible drilling results - it equals our previous best hole (55) for thickest cumulative intersections and beats it for weighted average grade.. Hole 55 has 83m @ 1.44% weighted average grade while 77 has 81m across a weighted average grade of 1.54%. I can also see that the pegs are becoming deeper from West to East (hole 77 picked up the spod from 150m down, while 55 picked it up from 200m). If the same slope continues up and down dip then I expect hole 84 to find the same pegs closer to surface and if they stick a drill between holes 34 and 5 and reach down to 450-500m, then we may find that the two systems are connected).

Colina West & Colina = one and the same? The commentary around the West system potentially being part of the same system as Colina is exciting and many posters here have already pointed out that the pegs seem to move down dip underneath Colina (but until they stick a rig in the right spot (IMO between holes 34 and 5) and drill 450-500m down, we will be left guessing for a while).

Lab Assay Turn Around Times in Minas Gerais continue to be the fastest anywhere in the world IMO. Holes 71-76 took 35 days from hole complete to assay reporting date (today). While holes 77-79 appear to have been turned around in an average of about 26 days (incredibly quick).

Drill Rates increased slightly: Previous forecast:.https://hotcopper.com.au/threads/lrs-general-discussion.5665313/page-10229?post_id=66868542.

Drill rates improved slightly from the last ANN on February 16th. We achieved 137m of drilling per dayover the current period, while we achieved 132m back in January/February.

I had estimated 91 holes to be be complete this week (however, this was based on an assumption of 8 rigs). Today's news showed ~88 holes complete (3 are within a few days of completion based on metres drilled) and 3 holes that need 1-2 weeks before completion. Overall, the drill rates I'm using look to be pretty accurate at estimating drill progress.

Potential to improve Colina JORC grade? The following Colina area holes have been completed post JORC: (50, 57, 59, 61, 62, 68, 74 & 85). The weighted average grades across these holes average out to be 1.57%.

Colina West versus Colina:

Colina West
Weighted Average Grade for Colina West: ~1.4%
Average cumulative intersection for Colina West: 39.46m

Colina
Weighted Average Grade for Colina: ~1.45%
Average cumulative intersection for Colina: 16.5m

5km South West Potential: Finally, Management's discussion of the pegs continuing on a south western direction is starting to make more sense when you look at where the mineralisation has / hasn't been observed already in Colina / Colina West. If these swarms to do continue beyond Colina West towards the South West - then 50MT looks well within our grasp over the next 12 months IMO. We've already seen a lack of mineralisation at the south eastern corner of Colina (see holes 48, 51 and 54 which were dusters). However as you travel west, the mineralisation seems to continue.