Project information with Graphitic Schist iterations, page-336

Hi Croc,

You really are earning your money these days but dare i say that since the slide from 45 cents to the current 12 cents it's all been in vain.

You mention 10 percent ore loss in the fresh material which seems optimistic to me given the narrow nature of the high grade veins. What about dilution? I think you will struggle to get it below 20 percent. For your information ore loss is ore that is sent to the waste up. Dilution is waste that gets mixed with the ore and sent to the plant instead of the waste dump - it lowers the grade of the plant feed. The problem is that these veins do not have a strike along a straight line from one end of the pit to the other. Furthermore the thicknTNR limited ess of the high grade veins varies along strike and down dip. Even though you will be doing grade control drilling to better define the geometry of the orebody the subsequent blast holes will at times drill into waste where the mine geologist thought there was ore (based on the grade control model) and vice versa. The reason for that scenario is that there is no data between the grade control drilling. it's unavoidable and the problem is made worse when the ore veins are narrow. When it comes to blasting, aside from the inevitability of some blast holes being in waste instead of ore , in a narrow orebody even a hole in ore will create energy that fractures and heaves the adjacent waste in either the football ore the hanging wall. For a wide orebody most of the blast holes aren't adjacent to the waste.

Regarding TNR limited - they are a company with less than 20 employees. Their operations director is a South African with no formal tertiary qualifications whatsoever. They cannot be compared with genuine quality blasting services companies such as Orica, BME and Maxam.