ozl ground position

Guys,

There has been a fair bit of discussion on the purchase of C and whether or not this was a good move.

IMO is was a sound move. OZL did not seem to overpay for C and in addition to a good development project also increased their exploration position in the Gawler Craton.

What I like about the Gawler Craton is that it is relatively immature terrane. I.e. has not been extensively explored historically. There are several reasons for this but mostly it is because the majority of the craton is under significant cover. The cover depths are in the order of 100 to 300 meters.

The result of this is that traditional surficial mapping and exploration techniques cannot be used. Meaning that exploration is an expensive business, as a lot of geophys must be run first to identify targets and then deep drilling needs to be utilised to test those targets.

Which leads me back to the fact that the craton has been under explored and has significant potential to host several more large IOCG systems.

In mature provinces the large deposits are generally found first at the lowest cost. As more and more discoveries are made the cost of discovery rises and the size of the potential discovery will fall. It is therefore important to consider how mature a certain terrane is before starting exploration techniques.

One technique called spatial statistical estimation of undiscovered mineral endowment are often utilised. This is something which I think would be very interesting for IOCG complexes in the Gawler. At one end of the bell curve we have Olympic Damn, in excess of 1 billion tonne deposit. At the other end we have a small number of IOCG deposits in the range of several million to several hundred million tonnes. Which statistically speaking leaves a significant gap between OD and smaller deposits.

So statistically there is significant potential in the Gawler Craton to uncover several more PH or systems much larger than PH. Geologically we need to consider other factors. One factor is that OD is very unique and possibly the majority of the mineralised fluids were trapped in one particular area creating a 'monster' deposit which took up all available metal content forming one large system rather than a number of smaller ones.

So as far as OZL goes, I think they are in command of a very large amount of highly sought after ground in SA. I also think it is only a matter of time exploring in the Gawler before another significant discovery is made.

As far as C goes, I think once it could really be a turning point for the company. If they can prove that current underground mining techniques will be able to prove robust financials on the project then we have an excellent asset to move into development over coming years.

I would like to see how we go about the uranium also, whether or not cost of recovery make it worthwhile to pursue as a saleable by product.

Cheers