Ann: Technical and Corporate Presentation Update , page-2

re: Ann: Technical and Corporate Presentation... Looking at the western limb extension (not yet in the resource or scoping study), I wonder if it might be significantly more valuable than GH, at least at this stage.
GH is a fantastic shallow deposit with amazing grades, but looking at Western limb, the widths defined by drilling (showing zones with true width better than 10ms), the high grades and the fact that it is known to run to below 250ms deep and remains open at depth with very high grades and open along strike, might make it more valuable for now. Open at depth with high grade is illustrated by hole 100203 which intersected 17m at 7.66g/t including 3m at 41g/t.
Western limb extension is 197ms long at 41g/t so nearly triple the length of GH high grade zone (60ms at 104g/t).
At nearly half the grade but triple the length, if average width is similar, both might contain a similar amount of gold to similar depths (very rough guesstimate).
However with GH we have only seen drilling to around 60ms and WL is defined to over quadruple that depth. At this stage even if GH was twice the average width, WL extension should be adding a lot more oz’s than GH.

“A single high grade structure located on footwall of a shale unit.
- Vein widths of 4m to 0.2m at surface but widens at depth to true width >10m.
- Western Limb Extensions not yet included in resource.
- Extension of 197m strike length averaging 44.83g/t gold from systematic surface sampling of narrow vein (0.2 to 1m wide).
- Peak surface sample grade of 576g/t gold.
- Drill results include:
- 5m @ 274g/t gold
- 5m @ 52.17g/t gold
- 4m @ 44g/t gold
- 17m @ 7.66g/t gold
- 18m @ 5.50g/t gold.”
These results show good potential that the very high ave surface grades continue broadly at depth.
Here is a quick number crunch that shows how conservative I might be with my 200-250,000 oz estimate for this years exploration work.
Take 197ms by say 2ms ave width. That in itself may be very conservative looking at the cross sections provided in the presentation showing widths to over 10ms true width. Work on near half the 41g/t surface sampled ave grade, i.e. 24g/t average (the veins in the jorc resource ave 24g/t so this too should be conservative considering the much higher than average surface sampled grades).
Down to 250ms, that would be roughly 165,000oz on just this one vein.
If the average grade is inferred to be 40g/t over the same 2m ave width, that 165koz’s jumps to 330,000oz again just on this one vein. Drilling on WL extension intercepted high grades below 250ms so there is further upside.
That is why I say my estimate might be way out, but I believe my 200-250koz estimate should not be too high. I tried to stay conservative.
Hopefully I tried too hard.
Let's hope this vein continues to 500ms or more. That 1 mill oz will start to look like a very easy target.



“One of the lowest cost / highest margin Australian producers.
- Safe jurisdiction with low sovereign risk.”

“Pilot plant 10-15tph, however readily scalable to 35 to 50tph (200K to 300Ktpa).”

The mid range of the pilot plant is 12.5tphr or 98,000t/year at 24 hrs/day and 90% availability.
So once we receive a mining license, the gravity plant could be operated day and night while waiting for the upgrade to a larger plant.
At 95ktpa and a head grade of 11.5g/t (scoping study estimated head grade) and 95% recovery, we could produce at an anualised rate of 34,500oz per year for an anualised revenue of around $55mill. That should be comfortably cash flow positive while we wait for the expansion.
Once expanded, 300,000tpa would equate to 105,000oz/year. With very high margins that will be a very significant production rate.
The same as NST and from open pit rather than u/g, and with higher grades as well as open pit, our profit should be much stronger than theirs.
Our mc is a fraction of theirs.

I'm confident on the resource upgrade being strong and also looking forward to the scoping study update to see the new work on u/g mining design. Will be interesting to see how many ounces will be added through the u/g mine design work.