Edited Updated Estimate of Peranghi OxidesUpdated Estimate of...

Edited Updated Estimate of Peranghi Oxides

Updated Estimate of Peranghi Oxides

Rereading the Q1 M & A I found more definitve description of the mineralization at Peranghi as follows....

Pit Mining focuses on a free digging shallow oxide ore that is immediately available from the ground level down to several benches defined by shallow drilling programs along the 540m, 35m wide strike mineralization zone.

Peranggih mineralization is known to have very deep weathering ( oxides ) up to 50m down deep

We know that the Peranggih mineralization is divided into three separate zones: Peranggih South, Peranggih Central, and Peranggih North.

During the quarter ( Q1 ), an additional 12,591m of closed-spaced, 5x5m shallow GC holes with a maximum depth of 10m were drilled to infill the existing gap and extend the coverage of the surface mineralization along the 540m strike length

This Development mining focuses on a free digging shallow oxide ore that is immediately available from the ground level down to 10 m several ie overburden

We also know that the this near-surface drilling program substantially increased Peranggih mineral inventory compared to the internal Resource estimated in 2018 at the same area based on widely spaced RC and diamond drilling. That estimate was 25,000 ounces in a closely drilled area measuring 150 m by 80 m by 20 m of depth

Accoreding to the Q1 report, total ounces have increased by 144%, the Au grade by 37%, and the tonnage by 79%.

This would imply about 36,000 ounces within this defined smaller area

Further, bulk sampling in 2020 determined that a representative average grade was 1.22 gms per ton.

Estimating the contained gold within this larger area defined by management as 540 m by 35 m by 50 m zone can be esstimated by simple computations, using a SG of 2.5 tons per cu m.

We have ...............

540m X 35m X 50m X 2.5 tons/cu m X 1.22 gms/ton Divided by 31 gms per ounce

This simple algorithmn computes to 93,000 ounces of oxides within these 3 high grade zones at Peranghi down to 50 m.


Alternatively , Managements historical estimates of 25,000 ounces adjusted by 144 % to 36,000 down to 20 meters can be prorata calculated down to 50 m as follows ..

36,000 ounces X 50m /20m = 90,000 ounces .

These estimates are very close.

Below 50 m, there will be the undeground sulphide lodes.

Conclusion

We have sufficient oxides at Peranghi that, when fully developed, will provide the Selinsing mill with at least 3-5 more years of good grades of Oxides which can be mined cheaply and trucked to the Selinsing mill.

. Additional sulphides below 50 m will add to that at Selinsing and BR, increasing the viability of the Floatation plant

It would not be unexpected to see Mentique replicate these results