Ann: Stockwork Hill - Further Significant Mineralisation, page-3

Hi Arsenic,

Absolutely! More than enough to keep me happy. If anything, I continue to be surprised with the muted response by the market to positive XAM news.

Even more surprised in this case. I provided some notes earlier on the other board I contribute to, see this link and scroll down for anyone interested: https://ceo.ca/xam.ax?04492c709356

But I can't help myself and must provide more thoughts, especially since no one else has:

1. The Target 19 discovery is VERY exciting. I believe smart people will pick up on this in the coming weeks. But again, the market seems to be asleep. We have this quote:

"Early logging confirms the continuation of mineralisation down dip and more importantly confirms that Target 19 is a new mineralised copper porphyry centre in the Kharmagtai porphyry cluster"

This is HUGE. If grades start approaching 1% eCu in drill hole KHDDH456, I think this could be a true game-changer. Based on previous conversations with management (and I believe some of the previous articles and/or news releases), making an economic, near-surface porphyry discovery could put the project over-the-top in terms of getting interest from all the majors. It could put Kharmagtai over the top as a true 'tier 1' project, which are exceedingly rare, even though many companies throw that term around.

I'm going to have to make a video on this at some point. I just don't have time as I'm preparing for PDAC in Toronto next week. Perhaps it's for the best, as I'll meet management again and get more clarity on this news release.


2. The headline Stockwork Hill assays are truly outstanding. While I would like to know more about the geometry of Stockwork Hill extensions at depth (we now have 3 holes with very good assays, but I haven't seen a visual model with all of them yet), I believe this has added considerable high-grade tonnage (the down-hole intersection seems deeper than the original hit from drill hole KHDDH419). It further confirms these extensions are wide-open and XAM just needs to keep drilling this out. This news alone would have been exciting and exceeded my expectations (I didn't expect to see another 2%+ eCu intersection). But combining this with the Target 19 discovery makes this a powerhouse NR.

3. As a negative, I am disappointed with drill hole KHDDH444. You can tell the company did not want to discuss this. My guess is that the core looked great, and the assays just came out mediocre. However, it wasn't a 'miss' by any means. To me, it seems the grades are very similar to KHDDH437, when we were hoping they would at least be as good as KHDDH430, particularly at depth. Basically, would have been nice to be closer to ~0.6% eCu or higher for this massive intersection, rather than ~0.3% eCu. But in terms of lower grade tonnage, this just confirms White Hill is adding a whole lot with each new hole. This is still going in the right direction.

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My notes are getting long. Will add that I do appreciate balanced comments on a board like this, and I tend to show a lot of positive enthusiasm for the few companies I'm a big fan of, like XAM. I will reiterate that XAM is underfollowed by retail, but institutions are salivating. I strongly believe the TSX listing is going to help for both.

@mrbornite61 said that he doesn't think this is the case. But North Americans REALLY are less worried about Mongolia, and it's a jurisdiction of interest. ERD on the TSX is the best example of a Mongolian exploration play with strong retail and institutional following (made quite a run early last year). And KCC on the TSXV is another one that received an unjust amount of attention relative to XAM ...simply because of the Canadian listing and promotions like this one: http://palisade-research.com/kincor...cusp-of-a-major-copper-discovery-in-mongolia/
KCC is a similar type of story to XAM...but really, XAM just blows it out of the water now. They aren't even close to the same league based on the recent KCC results vs all the recent XAM results. The difference in listing is the key difference here.

Oh, and it's easy to forget Red Mountain. Great to hear drilling will resume there next month!

Again, will do some recon at PDAC, and surely create another video soon after. XAM is the most deserving play of increased exposure I can think of right now. I think anyone looking to buy is very lucky that they can still do so at these prices.

Cheers,

MBG