while the run will continue, page-21

re: grade is king. media rule. yep bendigo gets th Risk is what it is all about, and at a mkt cap of 12 mill now and fully diluted of 18 mill, and with 5 mill in the bank valuing the find at a measily 7-13 mill, the risk, despite yesterdays stella rise, is very low. Ok we don't yet know the true orientation but it is most unlikely that they have drilled straight down plunge.

CSE have the old mine workings and the EM conductors to give them a reasonable, but not exact idea of the orientation. This allowed them to target the drillingholes in the first place. In fact they have drilled a fan pattern with the various drill holes intesecting the the strike of the EM conductor at between 70-30 degrees. Possible the true thickness might 20-30 meters. Certainly the old mine had widths of mineralistion of 20 meters.

The deposit is possibly, a folded-up and partly re-mobilised strat-form ore body, so this big intersection might have hit a fold nose which has concentrated the juice. On the other had CSE suggest it has some affinities with the Iron Oxide Copper Gold style (Earnest Herny, Selwyn, Olympic Dam, prominet Hill) In this case the thing could be a pipe like body.

The cautionary remarks by CSE that the attitude and true width is not know is more concerned with the work needed to findout where the thing runs, hence the downhole EM to narrow the target for second round drilling.

A few other fazctors in CSE's favour are;

There is a railway (still active ) from Cairms to Einesleigh. (infrastructure plus) The old mine and shaft are likely still in good condition as they were last re-enteted in the mid eighties for sampling, so this should provide CSE with a leg up in development.

The old mine at in a sleigh closed duew to low prices not due to the ore-body running.

Another risk lessener with CSE is all the other ground and prospects they have. All in all I still assess these are running to somewhere between 30-45 mill mkt cap.