cloncurry visit, page-15

Thanks Dossa and Soloist for the welcome. I expect I won't be saying a great deal because I note that many subjects have been done to death.

Some in particular though are especially contentious - like the JORC which has disallowed much of the resource simply because the nature of the ore body did not fit in with the defining parameters used to write the evaluation program. The means by which the ore body is evaluated for the purpose of the JORC works with 99.9% of ore bodies, just not this one and one or two others like it. Sadly some shareholders have succummed to the constant barrage of negativity. I'll not comment further on the JORC.

Another interesting done-to-the-death subject is the use of $2 as a reference price for the Copper equivalent figures. I note that the company is criticised endlessly for the use of out of date figures, in the same way that another copper producer was criticised endlessly for occasionally changing the reference prices.

While the use of $2 as a reference price does slightly decrease the actual content of copper it is better to use continuity than it is to apply a changing formula simply because the reference must ultimately be to a known baseline. Simply put, figures calculated in 2008 are a necessary part of the whole picture and to calculate copper equivalent figures using changing values only adds confusion which is easily interpreted as manipulative.

Additionally the RC assay numbers are distorted because of the well documented Native copper in a friable ore matrix problem, large differences seen between ajacent RC and DD assays. This will easily account for the small loss of copper due to the use of $2 to calculate CuEq.

It is therefore better to stick with the original reference price - doing so does not make a great difference to equivalency figures. In the end, what matters most is the $$$, and the use of $3.40 produces a much greater figure than does $2, the gold and cobalt are offset.

Hats off for McCrae, I think he is about to pull a rabbit out.

Morgan.