Ann: $6m Share Placement to Accelerate Southern Nights Drilling, page-51

I didn’t highlight enough the fact that the supergene sulphide zone at the Elura Zn, Pb,Ag deposit is absent of sphalerite (the main ore forming Zinc mineral), so based on this example the supergene zone is not necessarily a zone of particular economic interest in these type of deposits. It’s really the depth of weathering and how close the primary sulphide ore extends towards the base of oxidation that will define the economics of the deposit, together with the other usual suspects, grade, tonnage, metallurgy.

If we want to model Southern Nights on Elura we will need to look deeper, as the main ore pod there reached some 900m. Some of the up-dip potential at Southern Nights appears to be a little closed off. Not saying they won’t get more shallower hits but if we want tonnage I think we will need to pick up on the plung of the high grade zones and follow them. It wouldn’t surprise me if Southern Nights ends up being similar to Elura with several high grade pods. Trick I think is to find the high grade areas first and drill them on tight spacing to see if they can be extend down or in any direction. Company knows what it is doing and has the money, the rest just needs a little luck to turn this from a potential major zinc system to an actual major zinc system. Esh