PESA Luncheon, page-4

No doubt he will be talking about May's success at Alameda rather than the lack of it at Zapato. Clearly the seismic data at Zapato (or more particularly the interpretation of them) failed to correctly image the Vega Alta Shale and Placetas Carbonate (potential reservoir host rocks) below the ophiolite. The reason given was that they had underestimated the velocities of the ophiolite and hence they had underestimated the depth to target. The hole was subsequently logged for petrophysical properties but no revised depth to target has been presented to shareholders.

The gravity modelling obviously wasn't much help. Gravity responds overwhelmingly to near surface density contrasts, so wasn't able to resolve the depth to specific targets.

So, if you get a chance could you ask the geophysicist if they have thought about using MT (magnetotellurics) to map the depth to the carbonates below the volcanics. There should be a couple of orders of magnitude of resistivity contrast between the ophiolite and the underlying carbonates and shales. I have attached an example below or a very similar situation. MT is often used in the oil industry in similar situations. The MT survey crew (Quantec or Zonge etc. as I am assuming Cuba doesn't have enough work to host their own crews in country) could run some regional profiles from some areas where there is known geological control (Ie drill holes or outcrop in the NE) and head down to the SW across Zapato. The MT survey would be a lot cheaper/quicker than new seismics and I would wager that if it mapped a big red target on an image just beyond the end of the Zapato drill hole that the MAY share price would go up by a lot more than the cost of the survey!

I note that Antilles Gold (AAU) are raising some cash to explore a copper porphyry at the eastern end Cuba. They are talking doing some electrical geophysics. So we (Melbana) could share the mobilisation cost of getting a crew into the country. (Note, I don't hold any shares in AAU)
Anyway here is an example of MT providing better target resolution that seismics.



I firmly believe that MT could enhance our geological understanding and target definition at Zapato and elsewhere on Block 9. If it proves successful it could be used as a first pass screen of some of the other Blocks on the island that are still available. We could apply for more blocks and farm them out.