Ann: Annual Report to shareholders, page-40

Here is an update on the first two drill holes... sorry for being a tad long-winded but a few minutes in following the story below are worthwhile. All analytical comments appreciated too...

http://www.miningprojectsgroup.com.au/upload/Announcements/2015/20150518%20MPJ%20Investor%20Presentation%20May%202015.pdf

First Hole :

Historic ORTL9 which is just to the north of RHDD0001, scales as a deeper hole and is indicated as being something like RHDD0001. The ORTL series appeared to have the same dip of 60 degrees so direct scaling is valid. (the average depth of nearby holes ORTL1,2,3 is a decent 260m so this seems a reasonable projected measurement).. the significance of this unfolds below...

Second hole :

The projected deposit that sits on the basal contact around holes 4,5,6 predicted by the model on page 21 of The Investor Presentation is shown to be at a down-hole depth of about 420m.

However!!.... it appears that this has been totally remodelled, as they now suggest :

"Recent geological re-interpretation of this DHEM target by the Company's technical team (Dr. Hill?) suggests that it sits on the prospective basal contact of an upper flow (most prospective flow). The same contact hosts the high grade intercept ROE114.  The second diamond hole will be collared to intercept this DHEM target at a depth of approximately 260m downhole"

OK... so this section has been re-modelled ...  dramatically.

The Investor Presentation is out of date.

1. Instead of the famous ROE114 being part of a hanging wall structure floating in the komatiite flow as is shown on page 19, it is now proposed that there is an upper basal contact, common to the DHEM-indicated "deposit" at 4,5,6 and by implication 1,2,3 which is not far away from ROE114.

2. One does not have to pay for 420m of diamond drilling to go for the Target at 4,5,6, ... only 260m which is the new and much shallower depth.

This 260m roughly projected depth of the first hole ORTL9 where they want a look-around coincidentally is the 260m depth where they say the Target Nickel is at 4,5,6 sitting on the uppermost basal contact. It may well be that they do not take any deeper cores at ORTL9, just sniff around. I would like to think that opening up an old hole with diamond (and immediately doing a Newexco analysis) might be a fairly inexpensive and quick exercise.

So.... the good news is that if the New Talc Lake Model that has a common uppermost fertile basal contact zone at a relatively shallow 260m downhole is valid (hosting ROE114 and the other two strong conductors) we are in for fun times.

It seems like a bold call ...which in turn suggests that it may have Experience behind it. After all it is named as a RECENT geological reinterpretation.

Would be good to see the significantly revised model at Talc Lake.

A common uppermost nickel-fertile basal contact zone?

I suspect that (potentially inexpensive) Hole 1 might be a critically located hole that provides a mine of information and strengthens the revised model.  

Hole 2 is the direct attack on the "Target" and the real action. That is the nail-biter.
　
ROE114 contains [email protected]%Ni... so a very thick deposit of the same stuff at 4,5,6 would be nice for an early Christmas present.

Hope this is interesting stuff... PP