Cdv chart explanation, page-9

Surf very small here at Lennox Head today, so thought I'd have my two bobs worth before the trading week. Agree Rastus that it would be nice to get some comforting news, but likely way too early. Personally, the mistake these guys made was putting out this metallurgical information and not placing it in context with the prior leach tests from 2015 which were substantially better.

Now before someone says, but one was core and the other RC , it makes no difference in wet chemistry as long as the samples were treated in a similar manner, which it appears they have been ie. crushed 90% passing 75 micron. So I believe there is more upside to future results than downside, as this was one hole vs more than a dozen previously over the 1km strike. Core is really only taken for physicals ie. crushing parameters, which look pretty good.

We always knew this mine was going to be relatively low grade, depending where you you place the cutoff. If we assume a higher cutoff (.6g/t) and thus 1.4g/t head grade they'd return a recovered grade 1.06g/t following a simple crush grind float and UFG of concentrate. At at rough 3:1 strip ratio (my estimate) this is a substantially better recovery with potentially lower mining costs than say Perseus (83% of 1.05= .87g/t recovered) - currently with a market cap of $650M. My senior engineering mate in the West tells me that it would cost these guys $350-400M to build a conventional 5-6Mtpa plant and deliver 200,000oz pa for more than 8 years.

Discounting for the risk (build) factor, but not including any upside for resource expansion, at MC $62M this company has well and truly been oversold and Hartleys 46c is probably not too far off the mark for what we know; IMHO. Time will tell, but I'm definitely a LT buyer at these levels. t