quarterly out, page-4

Hi Pennynut,
What we all need to be understand with the gold at Maldon is that it is extremely nuggety.
There is a quartz vein approx 1m wide and the gold forms largely in pockets at the extremities of the quartz vein.

Whats important here is that they have confirmed that the quartz vein exists and it contains gold.

The grades really cant be determined by drilling, If you hit a big nugget you will get 2000g/tonne.
If you miss you get 1g/tonne.
One AGS drill results show 114g/tonne.

Bulk sampling the ore is the only way.
This is why AGS are digging the decline.

Remember these are historic workings.
History tells us the gold is there.
This is an extension of an old mine using existing infrastructure including plant, ventilation shafts, and part of the decline.

If all goes well they will be producing about 30-50k
oz per year, at a cash cost of about USD$200/oz

Maldon has the potential to host another 2 Million Oz or more.

The exisiting infrastructure and higher gold prices make this a very viable project.