Ann: High Grade Cobalt, Copper & Gold Mineralisation Discovered, page-33

EestWest101,

Must say a quality post. Plenty of information. You asked why they didn't do more SAM geophysics, i rang Matt a week ago got through straight away, nice guy, I asked him did they do any other SAM, he said yes ended up doing the Carpet as well as 5 other locations including the new area they announced on Wednesday. He said they ended up doing 5 times of what they originally contracted Gap Geophysics to do. I assume Gap are the people doing the SAM.

I did note that you believed that the Jorc resource done by QMN was uneconomic, actually you are right and wrong. Being a metal man myself I have had experience with a bit of processing ores. The 1 million pounds of Cobalt at Mt Freda already in Jorc compliance would not be a stand alone Cobalt project, agreed, but there is still 1m lbs of the co. Cobalt is primarily a by-product from mining of Copper and Nickel.  In this case it is a by-product of Gold. The cost of mining and the processing has to be done for the other metals and the cobalt gets done for zero cost except for the cost of the floatation. Maybe $A2 tonne. Whichever way you look at it, it still has 1million lbs and can all be recovered even if only 75% recovery still will recover 750,000lbs cobalt.

As for the new discovery the grade of 1300 and 2,000 at surface is not to bad either, again to be mined with the copper and gold. 2,000ppm Cobalt at todays price (A92,000) LME today. So that makes 2,000ppm cobalt worth A$184 tonne. that by itself is the equiv of 3% Copper. Considering this is a bonus. Mt Freda has a geological target of 500,000 ounces of gold as well which would increase the amount of cobalt if it stayed consistent to 6m lbs Cobalt (based on the current Jorc resource of 84,000 ounces).

You are correct in saying it is just a geological target, but what it has that gives it legs is that the target was created by one of Australia's most respected and elder geologists Mr. Neal Stuart who probably knows the Mt Isa area better than any other geo in Australia and why a lot of big money went into AMG.

Anyway not here to cross swords just putting my tuppence worth in. I also agree that one of the most experience and most professional personnel involved in the industry today. Ill back Matt and Wayne against any other group of guys in this field.

As for the massive selling on their announcement, I can only agree with "give us a chance" all the left over margin scrapers from the Eumeralla days who were all in at 1.5c to 2 cents, i believe the sooner they all go the better. Lets some real money come in and make this thing rocket.