trading halt, page-28

RJA, I also spoke with the company yesterday. Agree that they are indeed still very positive about Manbarrum, though utterly confused by the assay results from DD001 and DD002, and the logging from the other diamond holes. They say it's as though the Pod has moved. Well, of course, Pods do not move, so it makes me think there is some sort of a balls up with regard to the mapping, the GPS surveying, perhaps the RC logging from last year...who knows?? As detailed in the trading halt announcement, the logging on the DD holes to the north has clearly surprised them to the upside. Also, when you look at the quarterly report, the NEIP drilling has clearly been going pretty well also. Lots of large intersections of visible mineralisation.

They told me there is a lot of work to be done, and need to get more assay results back so they can begin to figure out what is going on.

They also said to me, nothing has changed in terms of it being an MVT system. All that has changed is that they have had a couple of DD hole assays which have been utterly unexpected, some to the downside, and some to the upside. I got the distinct impression that they will sort this out pretty quickly. I am irked by all this, as I am sure everyone is, but I guess it is not the end of the world. It's not as if they are saying, there is nothing there. There's plenty there obviously, it is just confusing at the moment. Hey, I spend most of my days confused...I can relate to that.

The way this has been handled has created a panic, though you will note that there really was not much traded yesterday, and it was the worst day of trading on the ASX in 6 years, which does not help, plus because of the suspension, everything was zeroed.

Excelsior made a very insightful lengthy post yesterday regarding the potential vagaries of these sort of drilling programmes. Call me an eternal optimist, but I think it is somehow better to have hit this sort of problem now, early in this year's drill programme, sort things out, and get back on track.

I remain optimistic, and given the circumstances, it is arguable this is cheap at the moment.