Ann: Gum Creek Project Exploration Update, page-3

Hi Roley

To me nothing here resembles a project or even green shoots that with a bit of luck could produce a project. It still fascinates me that HRN were able to raise so much in an IPO.

All the drilling looks very exploratory, see each prospect is getting only a couple of proposed holes, they are spread very thin with nothing interesting bedded down to drill out. The only decent grade (the 20g at 1m) is very deep, and even then the appendix 2 says they arent sure of the angle so true width is bound to be much less than 1m, the same goes for all their other results in this release making it even more depressing.

The heron south exploration drilling earlier in the year was very misleading too. Nowhere in the main announcement that I could see stated the true widths. Only in the appendix 2 did it say that the ore body was vertical. So using trigonometry and the hole angles we find the true widths of these results is only half stated intersection length.

I wouldn’t trust anything coming out of HRN and they would need to be very lucky indeed to generate any value from that place before they’ve burnt through their remaining $9m…