Ann: Drilling Update, page-150

Thanks Henry. Been having trouble trying to vis what’s going on here but Ur diagram, if correct explains a couple of things.

Firstly as long as their is connection between the two reservoirs essentially we have the same resource. An added benefit here would be if there was a hydrothermal at this slip point of the structure.

Secondly the upper zone in the down throw block will more than likely be creating an impermeable interface to the upper resource.

I find it difficult to believe that with all the geological knowledge of this area that they wouldn’t have known this structure existed or had interpreted it as such a possible structure.

Much depends on the geomorphology of this structure and whether it was formed post the original strata formation. Must have a look at that item SMR posted for us earlier today and see if this structure can be put in a timeline context with the major eruption 4 to 6 Ma

The company seems pretty confident the same brine bearing strata exists at depth which means this structure must have formed post the major pyroclastic eruption.

This would make sense from the standpoint of the eventual Cerro Galán caldera collapse as this structure probably formed around the same time as the collapse of the Caldera as the upper crust was no longer supported by the pressure from the volcanic activity below. It had all been released with that major eruption.

Time to do a bit more reading. Hoped I was done with all that. Guess I could just wait till the next annmnt. But where’s the fun in that.

Gr.