trial mining conclusion date, page-13

Hello bigjig,

With regard to the geology, I suspect from what has been published that we are dealing with slightly silicified sediments impregnated by the quartz reefs, veins, strigers and stockworks. Not unlike many systems around traditional gold deposits worldwide. Closer to home- Bendigo, Ballarat. many WA NSW and Qld. deposits -. These reefs will swell and pinch out in space. ie along strike and with depth. similarly with their associated veins and stockworks. As a consequence, gold grades will also vary and there will be sections or pockets with extremely high grades, and zones with not so high grades. The tenements at Old Pirate have the advantage that the average tenure or grade; is much higher than most other newly discovered fields in Australia. It also appears that there are numerous rich pockets in several of these reefs. I am sure that this phenomenon has had a major bearing in selecting significantly rich zones for the Trial Mining programme as it would give a much better understanding of distribution of mineralisation grades, metallurgy and ultimate dilution with the less rich pockets as mapped on the ground and as confirmed from assays over time.

Forgetting POG scenario's because we all know that it is a matter of time before gold finds an economic price for conventional grade mines to survive and operate. The ABU ore bodies are unique in grade they are not conventional, and IMO the component of the share price drop has been more due to manipulation of the stock rather than to the decimation of the gold price as a whole. Companies with lesser average grades have suffered a much bigger impact on their share price compared to ABU share.

With respect to the mining operations, I will leave that to Bobminer's expertise, and look forward to his professional input. I will say however, that in my opinion the host rock lithology (Sandstone and shales) are not very abrasive to machinery unless they have been extensively altered through metamorphism or silicification. Even so, this can be easily addressed, albeit at a cost. I'll hear you Bob!

The Potential porphyry Deposit of Buccaneer and its lithology is a different story which we will come to and discuss in due course.

Regards,

Helmenesh