Ann: Exploration Update, page-24

Hi @eastwest101 That' s pretty much how I read it as well but given the relatively low grades returned one would think you might run a standard that is of the same (tenor) rather than such high grades. I suppose they were expecting higher grades.

Here is a summary of how the drilling and "assaying" has progressed on Três Estados and Ema.

1) 20 Sept 2017 company announces that RC drilling at Três Estados had commenced in August 2017 and that 7 holes had been completed and the remainder of the drilling was expected to be completed 2 weeks thereafter.

The drilling didn't come without problems as the below extract from that announcement explains.

"BBX commenced reverse circulation (RC) drilling at the Três Estados prospect (fig 1) in late August. Drilling progress has been hampered by the extreme hardness of the fresh gabbro and by local high groundwater pressure. To date a total of 7 holes, totalling 285m have been completed (table 1, Appendix fig. 3). Hole TERC-001 was halted at the base of weathering at a depth of 24m due to technical problems and will be re-initiated in due course. All holes have intersected from 4 to 24 metres of soil and saprolite (weathered bedrock) followed by fresh gabbro. Two styles of gabbro have been identified, a medium-grained gabbro similar to that mapped and sampled from outcrops in the region and a finer-grained, darker, magnetite-rich gabbro. BBX expects the RC drilling at Três Estados to be completed in approximately 2 weeks when the rig will move to the Ema prospect (see Appendix, fig 4)."

2) A drilling update was announced on 26 Oct 2017 informing that RC drilling at Três Estados and Ema were completed and that diamond drilling at Ema had commenced.

Total of 25 RC holes for 930m across both prospects (14 RC holes at Três Estados for 530m and 11 RC holes at Ema for 400m)

3) 21 Nov 2017

5 diamond holes at Ema completed

4) 28 Nov 2017

7 diamond holes at Ema completed (total)

5) 9 Jan 2018

BBX has now completed 12 diamond drill holes, totalling 960m at Ema

So between August 2017 and January 2018 BBX drilled

14 RC holes at Três Estados for 530m
11 RC holes at Ema for 400m and
12 diamond drill holes, totalling 960m at Ema

so 37 holes total for 1,890m of drilling

BBX January presentation promises

​

"Release of RC and diamond drilling assay results Tres Estados and Ema first quarter 2018"

From today's announcement

Assaying of drill samples

BBX continues to progress the development of assaying techniques in Australia, Brazil and at SGS laboratory in Belo Horizonte. A number of variations of BBX’s analytical methods are currently being tested on a variety of samples. Seven RC drill samples from Três Estados, six from TERC-001 and one from TERC-002 were tested using one of the analytical methods (a nickel fusion) (see table 3 and fig. 5 for hole locations). All these samples were of soil and saprolite rather than from fresh rock, on which all previous work has been conducted. The six intervals tested in TERC-001 were not contiguous and were chosen to cover the full range of weathered material from soil (0-2m) to saprock. These seven samples were divided into three separate batches, comprising two, two and three samples, each of which contained a standard and a blank.

While three of the samples returned positive results for gold (see table 4) the values returned from the certified standard and blanks were unsatisfactory and not in compliance with QA/QC requirements. The Company notes that the same standards used previously by BBX for QA/QC purposes in sample batches assayed at various laboratories (results announced in 2016 and 2017) have consistently returned acceptable values.

The company will continue its efforts to develop an assay method to allow the systematic assaying of RC and diamond drill hole samples. As outlined above the company intends to commence metallurgical test work on Três Estados and Ema RC drill samples as part of this pilot testing programme.

To gain an insight into issues related to the treatment and normalisation of complex ores not amenable to conventional assay and recovery techniques, investors are referred to a 1990 US patent (see link below).

However, investors are advised that BBX is not using this methodology in the Company’s extraction process.

So the company has 37 drill holes (1,890m) sitting at both prospects and is stranded for an assay method to test the drilling that will pass QA/QC as the nickel fusion method is not good enough. What's more the actual results (of the few (7) composite soil and saprolite samples ....so 14m assayed from 1,890m drilled) were somewhat disappointing with a max Au grade of 2.9g/t over 2m, max Pt grade of 0.06g/t over 2m and a max Pd grade of 0.10g/t.

So it looks like they are going to start using the metallurgical scheme to test the drill holes. This scheme won't be a substitute for an assay either which means the company won't be able to report a resource under the JORC code no matter how much drilling they do.

It's going to be difficult to prove that these are the biggest PM deposits in the world if you can't find an assay scheme to enable you to report a resource. In fact it would be silly IMO to drill anymore holes until you've solved this difficult problem.

Giving some credit to the company they have made this clear to investors who actually read the announcements. So it's up to the individual to make up their own mind.

Personally I have some doubt about the reported metallurgical process which I might address in another post.

I'm sort of regretting buying the pop corn and the front row seat as the show was kinda disappointing. Esh