Ann: Large Porphry Copper Target Identified at Ce, page-12

re: Ann: Large Porphry Copper Target Identifi... Pretty happy with this announcement and have been waiting for it for a while now.

A large and compelling anomaly now associated with proven Cu Au and Mo mineralisation. I don?t honestly don?t know what grade will prove economic for this project but some companies are reporting resources at a 0.2% copper equivalent cut-off for large porphyry systems. Broad mineralisation has now been proven with 102.5m @ 0.36%, and 108m @ 0.45% Cu equivalent. This area can easily be included in a resource estimate. The IP anomaly and its dimensions suggested is large enough to support a billion tonne plus deposit if grades are proven to be more economic with new drilling.

The old drilling intersected the suspected margin of the anomaly so to me it looks pretty promising. The new drill pad (photograph 1) shows copper mineralisation at surface which I?m not sure was seen in cutting the old drill pads. This is significant because it?s directly above the IP anomaly and supports the idea that this zone has potentially higher copper grade and also supports the generic porphyry model of a supergene enrichment zone above the core of the system. As a comparison to what is actually economic, Pan Aust recently acquired a 769Mt deposit in Chile grading 0.32% copper and 0.09% Au. I?m not sure what price was paid for this.

Mineralisation was seen in the end of drill holes that are suggested to be at the margin of part of a much larger and potentially higher grade system. The grade increased with depth to an extent but if you look at the angle of the holes it appears they aren?t pointing directly into the new anomaly. A few deep vertical holes as planned could turn things around very quickly for this company. The age of the rocks, the structural setting and distinct, characteristic mineralisation proven to contain Cu Au and Mo have now been coupled with a very large and distinct anomaly that strongly suggests sulphide concentrations will be higher in new planned drilling intercepts.

They have obviously sourced a new deeper capacity rig and are currently drilling. Last drilling was successful logistically and completed within a good time frame with results soon after. This is a very good sign for such a junior explorer. They seem to be concentrating on this target and getting things done with deep useful drilling. The large shareholdings of the major holders will take a number of shares out of the market as they are unlikely to sell, as will the date restricted shares? to help amplify gains if results are good.