Ann: Annual Report, page-5

Page 5 of the AR ... key factors

NND001, the first deep diamond drill hole into the eastern edge of the Nagambie Mine West sulphide-gold target, is planned to go to 1,100m down hole. Notably, coarse sandstones intersected in NND001 to date are flooded with both hydrothermal quartz and carbonate whereas little carbonate is present in the Nagambie Mine mineralisation to the east. As drilling steps out westwards from NND001 further into Nagambie Mine West, the Company’s gold model predicts that the concentrations of all the precipitates, including gold, could increase to maximums that correlate to optimum pressure and temperature at the time of formation.