Ann: Shallow, High-Grade Gold and Silver at Chicken Little, page-47

Hi all,

I started investing in gold in 2001 when LHG (incorporated in 1995) was trading below the cash they had in the bank. That was sentiment for you - as they had a world class project and were 9 years later taken over for $9.5B. Price is a show based on sentiment and it swings from overbought to oversold and back again. Lack of excitement is one thing (and true) but assigning negativity based on very limited information as correct is unwise. REE's sold off hard and results are "not in yet"; end of story so far.

Price also gets manipulated as proven on so many occasions. A former head trader for a major US bank, who used to write my newsletters, told me how one of the major players would call them with a tonne of gold for sale at $15 under spot on occasion. The price was very low back in those days so $15 was a nice percentage. The team of traders would jump on the phones and sell all the ounces at a $5 profit (instant) so the buyers would sell at another small profit and the price would drop due to the sudden cheap supply. Just with one tonne in a quiet time of the day.

Paper manipulation of the gold price is far more common but that trader told me the "big boys would push price around to suit themselves". Market conditions are more protracted. Commentary on limited exploration claiming a dud is just unnecessary and potentially wrong. That is an idiotic approach compared to analysis of results and having an open mind.

Like a broken watch (or a LiC) it is right occasionally. Only with exploration, the odds are stacked against making the watch analogy more like right once a month or quarter. Time is needed to properly explore a prospect. Perhaps the negative nature of Voldamort was the cause of his lack of success for so many years? I voted for bigcons post a while back as it was funny and meant to be - but far funnier was the assumption that so many people wanted to hear from him. That is classic 'N' for you.

This question was asked of Dean:

"Do the pathfinder elements suggest "potential" for a decent system in the CY project? Did you learn more about that?

I wanted to ask you about the VMS implications at Mangaroon gold. I do understand it is too early to be definitive however you must have some idea of the nearest "friendly" floatation circuits available (or not) that might accept high grade ore worth trucking. If that comes under commercial in-confidence I get it.

A need for trucking is assuming it is not so big that it becomes saleable to a company wishing to build a stand alone. I bet the team is fired up about the project right now and eager to get back up there with rigs."

This was his answer:

Spartan, Doray and Musgraves to name a few!

I would say that having three lodes (Chicken Little, Megatron and Snowflake) which sit within a 2x3km area speaks to the potential scale of the system to host multiple lodes. Geochemically and from the pathfinder view, there is a strong ~6x8km area geochemically zoned cell if you will that goes from a hot Mo (over a hydrous and fractionated intrusion) outward through Bi and As-Sb. The gold anomalism as currently defined sit within the Bi-As-Sb zone as predicted by Scott Halley when we reviewed the surface geochemical data in 2018. This is indicative of a hydrothermal cell around an intrusive centre. We certainly see a number of intrusions within the T6 area including lamprophyre dykes and later structural overprinting. So certainly, some deep tapping structures and highly fractionated and hydrous intrusions coming through.

In regard to friendly processing, for the gold there has always been Black Cat’s Paulsen’s operation which will be back up and running this year. And high-grade gold can certainly make that journey. It is still very early days for the VMS, I do believe that Paulsen’s can handle sulphide material quite well and they have been consolidating base metal opportunities around Paulsen’s too. Our objective, as always with a new field or potential discovery would be to discover enough for a standalone, but it is nice having options!

The team is very eager to get stuck in and is currently on site, there is certainly nothing quite like finding something new sticking out of the ground, well, asides from drilling it and it becoming real! We look forward to seeing that black smoke.

The rigs are scheduled to mobilise start of June which is coming soon.

Now we have VMS footprints at Mangaroon. That is fantastic news but oh dear I am being a permabull LOL. I am invested in some VMS plays as they do tend to form in clusters of 2 - 20 lenses. They are often very rich. Keeping an open mind about this new development and CY based on comments from Dean above.

GLTAH CW