Ann: Wallbrook Exploration Target & Mineral Resource Estimate, page-198

Look how far Tunkillia is from their Central Gawler mill. Probably 200km by road. Not sure .94gpt is viable. The plan is to build a plant near Tunkillia at a later stage.

An MRE is in the first instance really about outlining known JORC resources. Then companies usually start to define the profitability by proving up the resource to reserve status, which BGD will have to do to get the necessary project funding. This is a long term proposition whereas the old Challenger mill is the first step of a larger plan for them. I held shares in WGP which went broke at Challenger before BGD bought it from the administrator an then listed on the ASX.

2gpt carted 40km to an NST plant and processed as a 50/50 profit share would make money if a deal could be struck as no stand-alone plant required, therefore the need to prove up the ground to Reserve level won't be required. NST would just start mining it and continue until it was no longer profitable to do so imo. In the meantime NXM will be looking to identify further deposits so mining could continue once Crusader is depleted.

The above scenario is possible imo and about the best NXM could hope for. They are many years away from ever mining in their own right and the dilution would be astronomical to ever prove up enough resources at Reserve status to borrow to build a mine.

NST won't buy out NXM imo as it wouldn't fit their criteria. As a large producer, they'll only want proven resources of large capacity to buy. But mining closeby deposits of a reasonably viable grade just may suit their needs. They can just exploit the nearby deposits without taking ownership and retain more of their own gold resources as a consequence.

The company has under delivered massively to what was expected and producing a conservative MRE based on a 1gpt cut-off instead of going down the same path as others and using about .5gpt, has left plenty of ounces outside the MRE.

It would've made more sense to include all possible resources under current JORC guidlines and then, in a follow-up announcement, outline a possible higher grade resource within a pit design showing the 175koz deposit and letting the market know what the next steps forward are.

AT may be a great geologist but he is very poor at marketing. This was an epic fail because of the way it's been presented as much as anything else imo.

Just my opinion