bottom line

I will be stunned if next week's announcements are NOT positive.

My simple reason for assirting this is the strong hint given in yesterday's announcement:

"The drill density and continuity of mineralisation is expected to result in a high proportion of inferred resources being upgraded to indicated category"

What is the significance of the 'high proportion' upgrade from inferred?

Simply this. In the DFS and EES announcement in Dcember, the feasibility of the EES was established on the basis of 23.3m lbs wihin all Lance projects.

At the time of the last resource upgrade, in June 2011, PEN had 42m lbs of which 11.3m lbs was M&I and 30.7m lbs was infered.

Therefore the feasibility shortfall in June (based on the feasibility parameters announced in December) was 12.1m lbs of M&I resource.

The task for Strata - by late March - was to convert 40% of its EXISTING infered resource (of 30.7m lbs) to M&I and/or identy new M&I resources in its new exploratory drilling since June 2011.

Strata has drilled 810 holes since June 2011 - 510 more holes and at higher average grades than the previous inter-resource upgrade period (between Feb and June 2011)

So, with this substantial drilling since last June, has Strata been able to identify the required additional 12.1m lbs of M&I resource (by converting around 40% of the existing infered resource or delineating new 'indicated' resources)?

Well,I think they answered that question yesterday with the comment that "The drill density and continuity of mineralisation is expected to result in a high proportion of inferred resources being upgraded to indicated category"