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Pelm1

Not sure if u are reading the map (fig 2) with the borehole locations correctly. FMS have drilled at the upper end of the narrow section of Area E & it is this bit thats been extended to the north.

They cant drill to the south as that block belongs to someone else.

In simple words, pre-drilling, Area E extent was 4.1 sqkm & assuming that Kev's geo's, used 20m thickness in their block model & 2.5spgr, the reserve estimate would b about 205,000,000. At 55% Fe grade, thats 112.7MT.

With currrent drill data, the areal extent is now 6.5 sqkm, with 20m thkness & 2.5 spgr, u get 325MT. With 55% Fe, thats 178.7MT.

178.7 minus 112.7 is 66MT, which is more then the estimates made pre-drilling. Thats what Kev is talking about in today's report without the actual numbers. I hope u get the drift.

Drilling in Area D will again change the numbers.

cheers