update

Spoke to SBR today, any concerns of accuracy can be directed to SBR. Nothing below is price sensitive..

(Q) Next Announcement?

SBR putting together Quarterly Report, it will be shortly (end of January at the latest).



(Q) Will the next Quarterly Report include the following?

- 3D Modelling diagram?

Yes, SBR has recently started using Micromine Software package, which is the software package that produced the 3D Modelling GED published it its latest announcement. SBR will produce multiple angles of the 3D Modelling at Guchab.

I discussed that the latest GED announcement was what I was looking for in future SBR announcements, 3D Modelling of the deposit, meaty discussion of the prospective areas. I would like more information please ?


- Gravity Survey?

A few issues that SBR is dealing with in regards to the Gravity Survey:
(i) Issues with some of the data collection and
(ii) Issues with some calibrations used and
(iii) Consulting with Geophysical Consultant on what is Noise vs Response

Preliminary data is interesting, but SBR is going to deal with the above before making any commentary on the Gravity Survey. SBR noted that Geophysical data may be more problematic in these parts of the world than other parts due to the geology.


- Eisernenhut recon drilling?

He would not discuss in detail. The assaying took longer than normal due to Christmas Break. A more detailed commentary may be provided in later market releases.



(Q) Accuracy of the Guchab Modelling?

As accurate as it can be given this geology; actual mineral interceptions vs modelling forecast – error rate is less than 10% of downhole depth (i.e. if the model suggests that mineralisation starts at 70m, after drilling they found that mineralisation starts at 73m)



(Q) Have there been any issues with the drill rigs?

Yes, the company owed DD Rig had a gear box malfunction early in December, a new gear box has been dispatch from the Philippines and it is in country. The company owned DD rig should be operational within a few weeks. The downtime loss of this rig due to the breakdown was minimal due to the normal ceasing of drilling operations during the Christmas period.


(Q) Has there been any lost core from the Drill Rigs?

Nothing new, just as per normal; still encountering some (but more isolated) issues with ground conditions. There was one drill that had to be drilled a few times due to SBR intercepting a fault..



Further Commentary made by SBR:

The mineralisation at Guchab looks to be broadening (increasing in thickness of mineralisation) and increasing in grade as it plunges to the south.

The mineralisation encountered thus far has been within 100m of surface as the company owned drill moves down with the topography of the mountain.

The SBR manager accepted that the market would like information more regular, but the ground conditions and topography (difficulty in mobilising the drill rig) was the reason for a reduced speed of progress. But he assured that the exploration programme was developing. He continued by saying that if an explorer had 4 Drill Rigs on this mountainous topography, it would be equivalent to having 3 rigs on flat topography.

GLTA,

Sutto