BULK SAMPLING PROGRAMME With the Dubbo Deeps Resource upgrade...

BULK SAMPLING PROGRAMME

With the Dubbo Deeps Resource upgrade nearly complete, work to commence shortly on upgrading the Mystery and Crown vein estimates, I thought I would take a look ahead to the Bulk Sampling Programme scheduled to commence towards the end of 2017.

Let's go back to May 2016, before the recent substantial upgrade in our JORC 2012 resource (previous JORC resource was compliant with the JORC 2004 edition) and perhaps more importantly (as far as the Bulk Sampling Programme is concerned), the significant increased grades in the Dubbo and Woodstock zones.

The below extract is from the 'Offer Rights' announcement from 20 May 2016:



The price of gold in USD terms has softened since May 2016, however, the NZD has strengthened significantly against the USD (Exchange rate assumptions were based on a NZD/USD of 0.69. The current exchange rate is ~0.75), therefore offsetting the decline in the gold price (in USD terms).

Bulk sampling revenue was based on a head grade of 10.82g/t. I note that in the recent resource upgrade for Dubbo the average grade is 21.98g/t. The average grade of resources in the Woodstock Zone increase from 3.7g/t to 6.3g/t. I think we can safely assume that revenue from bulk sampling will increase significantly from the previously estimated 30M NZD. Grade is King!!!