Stockbroker Report, page-16

Hi xxxxxxwwwww,

I had a bit of fun with Paint to draw a dodgy picture of the sausage (red).

Everyone seems pre-occupied with Newcrest's land. We aren't mining Newcrest's land, we are mining ours. I imagine Newcrest found traces of gold and copper, but at the depth, as Matt Morgan said, they will argue that it is not commercial.

What we need to worry about is the commerciality of all the gold and copper on our land,

- History suggests at least 90,000oz at Mt Freda...so should be over 100 000oz there now with our extra drilling
- King Brown find some nice grades so a decent deposit there as well.
- We have decent pits at Falcon, Shamrock and Comstock, which have pits over hundreds of meters each at good grades.
- Evening Star....is the bottom of the sausage with lower grades (which may indicate comparison to Newcrest adjacent which had non-commercial grades)...
- However, if the sausage does stretch to the north to Little Duke over 2kms and is uninterrupted, we may have IOCG grades somewhere between Evening Star's and Little Duke's the whole way. This is a big sausage, which I believe has commercial grades. If anyone disagrees please elaborate. Matt Morgan always said "this is big". They did I believe drill the easier targets to ensure a decent JORC as they missed at Little Duke early on. Cash from Mt Freda will allow the sausage poking to continue.

I think they have a lot of good gold as gold prices skyrocket over US$1600 an ounce.

Then we wait for Burra...