Ann: Discovery Hole at Vidalita, page-18

Hats off to you Excelsior for the due dillegence and calling the company to get a better read on the announcement. I will attempt to address the above points as a few raise more questions than they answer unfortunately:

Emu has drilled some targets to the north of Vidalita but has not announced results yet. This could change the picture from that one section you refer to above.Yes it certainly could but I do note the order of drill holes appear to have been done on the basis of highest priority first as opposed to drilling systematically from South to North. The fact that the holes up North are towards the end of the campaign would appear to indicate the company has less confidence in these, that is not to say that they will not find anything but I would expect the chances to be less likely if that is indeed the case.

The breccia was not mineralised on that 5300N section as you say, but the recent announcement indicates that the assays and geology of this hole may indicate:“….the occurrence of sub-vertical faults and silica-pyrite breccia indicates a possible vertical trend that may be controlling high grades of gold and silver. These structures are open along strike, at depth and down plunge”.

Agree with that structural interpretation but the previous proximal drill holes don't indicate grade continuity at depth and along strike from those structures and the term 'may indicate' is certainly no confidence builder. I would also question how those structures are analogous to Salares Norte.

Previous announcements refer to a diamond drill hole 5700-1 located 300 m to the north where highly altered polymictic breccias are associated with significant gold and bonanza silver up to 1500 g/t intersected at depth.

Certainly encouraging but I would question why is that not the focal point of their current exploration campaign if it is so promising at depth, the focus of this campaign is clearly targeting shallow mineralisation? The below picture probably gives a good indication along with the fact that intersection referred to above was only a 2m high grade shoot at 216m comprising of 1m at 1049g/t silver (Certainly Bonanza grade!) and 2m at 0.68g/t (Would certainly question significant).



The big potential has been stated to be primarily along strike and down plunge – (likely to be to the north).

I won't dispute that as I am not on the ground there and don't have access to the information they have however it is worth noting that based on the 5500N Section which is the next section directly to the North, they did drill 3 holes along Section previously and came up with nothing. That is not to say there is nothing there, it could simply mean that because the geology is dipping in that direction, they simply haven't drilled deep enough to intersect their conceptual target.

My read on the geology (and I am obviously not as experienced as you are WCJ) is that the trend goes north which is where the system remains open and at depth and we dont have results from that yet, so this continues to be a good punt, and the drill hit we got yesterday has only capped the stock under $10m so this could really move from here.

A fair bit of drilling has already occurred to the North without success but that is not to say there is nothing there, just that whatever is there may not be as big as they expect or the geology is a bit more complex than their current understanding. Agree with your point regarding Market Cap, there is not a lot of upside factored in so should they come up with the goods then this stock will certainly run especially when considering how tightly held it is.