Howdy AllI see AR has already posted about the site visit but...

Howdy All

I see AR has already posted about the site visit but also see that Fakey wants a bit more of an update.

Well...first of all...the whole plant seems to be humming along nicely. The processing plant is running on a 7 day x 12 hr on/off cycle (7am-7pm) and at the moment processing McNally's material. They are getting a little less than the anticipated 8 tph as the plant has to deal with the harder diorite host rock from MS, but they feel that this should ramp up when processing RoD material as not as hard host rock.

They have introduced two VSI units into the processing plant that has improved gold retention and currently sourcing some larger motors to increase power. Overall, the team seemed pretty happy with how the plant has been operating and the improvements to date.

We had the opportunity to go underground to 7L and 9L. McNally's mining is well advanced and at this stage (without including any drilling on any extensions) there is probably 4-6 weeks more to go. Having said that, some of the further drilling of McNally's has returned visible gold in the cores, so the geo's feel there could be more in McNally's to come, but need to have all assays/data before making any further statement on this.

On 9L there is also quite a bit of activity happening. Two risers have been put up about 30-35m into the Stones reef (extension?) where face sampling is indicating that they are possibly into another McNally's type structure. The idea is to drive along the length of reef to where the old timers finished up at the old Stones/Maxwells reef junctures, use one riser as access and the other as a chute for the Stones material and load out of 9L. There is already rail laid in 9L, so they anticipate that Stones (if all is proved up) can be mining in a few months...which can then be next mining resource once (if) McNally's is finished.

Additionally, at the far end of the MS dyke on 9L, there is a drilling team that is punching some holes into the "gap zone" chasing a target. The team had only drilled one hole and were into the second when we visited. Whilst there has been no assaying of the first drill hole, the drilling team said that they had hit about 3m of delaminated quartz/sulphides/etc. which they thought looked promising. The team believe this could be a down dip reef extending from about 200m further up 9L drive, however further drilling/assaying needs to occur for any further clarification, so it is just a supposition at this stage.

After the plant and underground tours, we had the chance to sit in a presentation with TdV and PdV. Points to note:

- McNally's drilling, face assays, head grades, etc. all indicate that what they surmised from drilling circa 15-20 gT is what they received at head grade, which gives the geo's much more confidence when interpreting drilling results in future.
- Current drilling program has improved/increased with bigger/better drilling equipment which has the geo's run off their feet.
- There is circa. 500t of material at RoD ready to be processed and they feel they have found another reef (which I think named Callagher's as they feel it is an upward extension of that previous named reef) which looks very promising. Apparently quite a bit of visible gold.
- Additionally, the geo's have a lot of confidence in the actual dyke bulge at RoD which has been relatively under explored.
- They feel that they could been onto something in the "gap zone". Very early days, but if it proves up and extends to where they think it does in 9L, it could be a reef big enough that could provide circa 2 years of mining. On the comment re the first drill core...it has to be assayed but it is showing the signs eg fracturing, sulphides, etc. they would be looking for in a MS gold bearing structure. On that note, whilst they have not seen a lot of visible gold in McNally's either drilling or mining, it is returning good grades...so they are not too concerned that visible gold has not been noted in a lot of the cores to date from MS.
- Plan re processing is to finish McNally's (maybe get into a few more pockets/extensions), process 500t from RoD whilst bringing Stone's online, then commence Stone's mining/processing which would have a mine life similar to McNally's whilst continuing to explore for other reserves. They feel quite confident that mining and processing will continue unabated.
- They are happy to have ann'ed AUL's maiden JORC at RoD and believe it will prove up further in due course. They seem very positive about the potential in the Callagher's? reef and dyke bulge.
- Enviro's application for RoD has been provided to appropriate departments where they required some further info which is being done now and will be returned in next few weeks. Team expect to have an answer on that front in next few months.

Overall, the whole operation looks to be operating well. I also like the stepped approach they are taking to managing costs in relation to mining, processing and exploring. There doesn't seem to be an over expend on one or the other...it seems a well balanced and considered process.

@Krum, I spoke TdV re ore sorter. He has been looking into a number of optical/x-ray sorter options and believes it could work with the AUL operation. However, they first need to prove up the reserves first which they are well on the way to doing so it is something that could definitely be considered as part of the arsenal in near future.

Personally, I would like to thank TdV and the team for taking the time to take us through the plant and see the operation above and below ground. The progress made to date is quite significant and I feel better things to come from my perspective from where AUL were 12 months ago to where they are now.

Cheers to all and happy to answer any Q's you may have to my best ability

The K