hole 5 choice -significant?, page-3

Daveironore,

I enjoyed your post as much as the Peters one on ASX. To be honest I've been scratching my mellon thinking about the same questions. Mainly what type of deposit are we looking at?

To me the primary mineralisation seems to be copper Molybdenum from visible mineralisation in the core especailly down at the deeper levels. That doesn't get me really excited.

What does is as you have noticed, some secondary mineralisation. We have oxidisation which can form supergene which is value adding but what has caught my attention more is the prospect of a major epithermal find here in Andewa. Its hard to do a petrographical study on drill core photos but it seems to me there's more to it than just primary mineralisation. That is important because copper moly porphyrys don't generally hold much gold. Copper-Gold porphrys hold more but not often over 1g/t and more often less than 0.5g/t.

Lihir has been mentioned before by Peter Mc Neil for reasons, mainly size. IMO there are starting to appear more simularities. Both are in the Calc alkaline suite,(very similiar rock types chemically) and both are volcanic systems of very simliar age. Andewa is only slighly older and has more erosion in parts but other than that, they are so similiar. A major secondary mineralisation like epithermal can concentrate gold to such high levels that bulk mining like in Lihir is possible. Some of the core lools very epithermal to me rather than the usual propylytic alteration around a normal porphyry copper. Its hard to see exacly how much adularia is present, but some of the bleached zones in the core seemed to look extremely good.

If FNT do find Lihir type intercepts, we are going to go ballistic regarding market cap. Lihir has a resource of a massive tonnage of about 4g/t from memory, so we will not be restricted to porphry gold copper grades. I'd be very happy with good porphyry copper gold grades but it will also be far too early to be conclusive after first results. Drill holes 2-4 are in another prospect altogether so I'm hoping investors don't panic after the first results if they look a little low.

I have to disagree with your assessment on FNT's market cap going down to around $30m if the results are not good. It depends very much on timing because the general markets are not helping with the crisis in Europe and US, but there's so much work to do at Andewa that we will not know the outcome until at least this whole drilling program is finished. FNT also have much value in there JV's and Tasmania. They seem to be overlooked far too often.

Have a look at some of the explorers around SFR's deposit. FNT doesn't look overvalued compared to them at all.

Hole 5 and its significance. I think they have found enough evidence at drill pad 2 to do it there. I wouldn'nt be surprised if they decide to do drill hole 6, the vertical from the site next as well. Nice to get sections with 3 holes in it over the epicentre of a prospect. They will probably have a track to the Norhern site by then and need no helicopters for the next holes.