Tandarra Update, page-28

We are now waiting for the assay results of diamond drilling DDT018 about 200 metres further south of DDT015 and other 3 deeper sections of holes DDT013, DDT016, DDT017 which were drilled and completed at the end of March 2018. The cores were not assayed by CYL so far as CYL was waiting for the retention licence granted and JV was finilised.

See CYL anns. "Tandarra Gold Project drilling update" on 27/04/2018

The results of these holes, especially DDT018 will reveal the significance of Tandarra Project, and will provide confidence that high grade gold lodes similar to Fosterville and Bendigo may be present at Tandarra.

At shallow sections best intersections returned high grade results were;

• 10.0 metres @ 4.65g/t Au from 83 metres down hole in DDT016

• 10.0 metres @ 4.5g/t Au from 107 metres down hole in RCT216

• 3.0 metres @ 7.01g/t Au from 35 metres down hole in DDT009

• 6.0 metres @ 4.53g/t Au from 57 metres downhole in DDT014

The interesting part was intersected at deeper section (at 261m) in hole DDT015;

• 31.0 metres @ 0.7g/t Au including 1.0 metre @ 8.5g/t Au from 261 metres downhole 

Now read CYL's comment from their anns to understand the importance of deep drilling assay results;

"The last intersection quoted is very significant because it confirms the presence of a deeper zone of gold mineralisation separated from the previously drilled shallow gold zone at Tomorrow... As explained in previous announcements, the stacking of shallow plunging gold zones is a feature of both the Fosterville mine where the Swan Zone now contains reserves of 1.16 million ounces of gold at a grade of 61.2 g/t Au (refer ASX announcement by Kirkland Lake Gold Limited dated 6 April 2018) and Bendigo, which produced 22 million ounces of gold at a grade of 15g/t Au.

This stacking was also indicated at the Four Eagles Gold Project where the Company intersected two high grade gold zones in one hole during 2017 (20.0 metres @ 21.4g/t Au and 22.0 metres @ 36.5g/t Au in FERC185)."

"A further update will be provided when assays are received from the remaining four diamond drill holes (DDT018 in progress) and this will enable a full interpretation of the deeper gold mineralisation at the Tomorrow Zone."

Mr Bruce Kay, Catalyst’s Technical Director, stated, “The discovery of a thick zone of gold mineralisation at a deeper level on the Tomorrow Zone provides confidence that high grade gold lodes similar to Fosterville and Bendigo may be present at Tandarra...Although the grades are lower than expected, the strong shearing and quartz veining in the zone and the presence of arsenopyrite and some visible gold indicate that further drilling may encounter higher grades nearby”

I think it is all waiting for the results now. No more to say.