ann: trial mining and gc update, page-11

"the previously interpreted main fold closure was not apparent."

It means that mineralisation of that vein is open in that direction rather than being closed. That opens up a further exploration lead.

Overall this is a very positive update. Grades were either as expected or much better than expected. Head grades in some areas are much better than in the resource model not just thanks to better dilution management but thanks to higher than expected average grades and better than expected continuity of high grades. It is also quite clear that there are multiple open exploration leads.

Implications are a potential/likely upgrade to the resource size and grade. For mining that means more gold per year for the same size plant and a longer LOM. The two combined will increase any valuation on the company either based on discounted cash flow or based on contained ounces and grade.

Current sp reaction is typical. Traders often sell into any news for this stock so buyers may be cautious not to pay more than they need to by rushing in. That won't stop the stock moving up more gradually on continuing positive developments.

Leaky boat makes no sense. Why sell ahead of a positive announcement. Anyone that sold at 3.1 or 3 most likely did so because the producers had already corrected significantly, or maybe they just needed the cash or wanted to lock in a profit; not because they knew a good update was coming out.

Paddyboy the ML looks almost in the bag. Nothing has come out to date to suggest any risk at all that the ML might not be granted. Especially the backing (and go ahead decision) by the traditional owners.