Ann: Significant Extensions to Mineralisation at White Hill, page-12

John,

The graph from the Angry Geologist is a stab at a way to simplify the feasibility of a project anywhere in the world, which is a bit liking trying to make clothes to fit the average person. The clothes won't fit a hell of a lot of people.

Specifically, the long holes reported are not subeconomic IF IT IS FEASIBLE TO BUILD A MINE at Karmagtai. The grades encountered are above the Cu Eq cutoff grades Oyu Tolgoi is using for both opencut (.22%?) and underground (approx 0.5%) .

The real issue is, WILL Xanadu be able to find and map enough mineralisation and then produce a positive feasibility study. I say "will" because they haven't yet and it is up to the punter to make his or her own guess about that. There in lies the art of investing in explorers. For me, a long intersection at a grade that would be above cutoff grade if there was a mine there is a pretty encouraging result at this stage.