Ann: Teal Gold Mine Operations Update, page-21

Hi HotRod,

When you say "they were looking at Teal stage 3 southern cut back and there is the primary mineralization in the pit floor I think they were doing test work on to see what sort of processing path best suit it." Are you taking about two different areas here? As in Teal 3 (southern cut back) and Teal Deep (pit floor)?

Also, does anyone know if Teal 3 has the same "challenging" refractory ore as Teal Deep?

If the test work for Teal Deep confirms nonviable processing (see below), do they move to Goongarrie Lady as the next cab off the rank after Teal 3?

FWIW, this excerpt is from Baillieu Holst's investor report (23 Mar 17 - see intermin website) regarding Teal Deep:

"Teal Deeps takes ore below the base of oxidation that will not be mined in Stage 1. Mineralisation below the base of oxidation occurs in a refractory sulphide and gold recoveries in a standard CIP circuit of 40-60%. The options to recognise value from this would be to negotiate a suitable processing JV with a roaster like NST’s Kanowna Belle or with someone with a suitable alternative processing circuit like KCGM’s ultra-fine grind circuit."