jumpstart & othersI am not knowledgeable on mining and its terms...

jumpstart & others

I am not knowledgeable on mining and its terms but I will try and explain what we saw when we went down the Warrior Mine.

We were driven down a main tunnel around 600 metres and possibly 150 metres below the surface. We then ended going up into a reasonably fresh stope. These are narrower than the original stopes as the ore body sits in fractures between 1 - 2 metres in width.

The fractures run down in sheets at an angle of ~22degrees from horizontal and that is one of the main reasons for reducing the size of the stope and changing to smaller size equipment. The sheets are not of a consistent width. The smaller diameter hole (stope off the main tunnels)reduces the amount of 'waste' material to be removed and still allows effective digging into the ore body to remove high grade ore.

Stopes are run in off the main tunnels parallel but offset to each other with the objective of having the ore body run through at an angle within the mined area so that the mining of the stopes can then be carried out through to the next level.

Running the smaller tunnels/stopes for the mining is quicker (although they are only drilling out around 100 metres per month) with the current operation. Most of this work is being carried out in the evening where a cheaper rate for electricity is achieved. They use 1000 volt power in the mines as a standard!

The most effective way to mine this type of structure is to have around 6 stopes operating at the same time so that if an issue occurs in one stope there is still miming being carried out on the others. It costs a lot of money and time to get the mine to this level and there is not enough cash to enable this to happen at the moment. - funding is needed from somewhere!

In previous reports the angle of the fault lines in the mine has been clearly depicted

I had a brief discussion with Dr Brian White who has now been appointed as a director. As a result of these discussions I have confidence that he will make a difference in the current and ongoing operation. He did indicate that he had a few issues in the past as a 'non executive' director but his appointment now will hopefully improve the operations.

Please let me know if you would like more clarity in anything above (I am sure some will as I am not to sure if my descriptions are clear enough).

As other thing come to mind and as I (hopefully) get answers to questions raised with the board I will report here accordingly.

It may mean another trip to the mine in the future but we are only 1.5 hours away.

Regards