Ann: Quarterly Activities Report, page-19

Some people commenting on this thread are confusing exploration and resource/reserve drilling.

The only defence against an early TO is to expand the resource/reserve at M1 so that the production deficit at the back end of the first 5 years of the mine plan is filled with high grade ore from the depth extension to this deposit.

Although the deep hole that has been drilled into the deposit is highly indicative of the deposit extending at greater depth it is not a substitute for actual drilling that is required to establish and extend the resource/reserves at depth at M1. One hole in isolation is not enough to even extend the current inferred resource IMO. We seem to have an apologist in our midst who either doesn't understand this or is deliberately trying to blur the understanding of the difference between resource and exploration drilling or has become the resident upramper based on an adgenda or their self proclaimed and unsubstantiated impeccable timing. Uprampers in my opinion are just as dangerous as downrampers.

If a TO comes now the expert report that the company can rely on to defend value can only draw on the known resources and reserves and any FS that hinges off them. It would be very difficult for the experts to ascribe significant value based on that one deep hole alone, no matter how prospective and indicative it may seem. That is why it is very important that the drilling at M1 continues unabated to lift that deep hole and the intervening undrilled areas between the currrent resource and the deep hole to at least a JORC inferred level of confidence.

The actual mine build won't cause the shares to be more undervalued, in fact as the debt is drawn down and the company goes into net debt the EV increases and the gap between the EV and any "current" NPV diminishes, so the value proposition depends on lifting the NPV through expanding resources/reserves, extending LOM, reducing costs and increasing NPV. When the acquirer comes the price paid (value to the acquirer at the time of the offer) will depend on the number of SOI, the SP at the time, the company's net debt and the value of the hard assets and mineral rights (which encapsulate the mining title, permits and resources and reserves within those mineral titles).

I think someone attending the AGM should ask Richard directly if the deep directional diamond rig was demobilised after the completion of the deep diamond hole and if so why. If it hasn't been demobilised, the next question should be what the status of the up-dip holes are (both new and wedge and any other holes that may or may not be underway). The silience in this department is deafening to interested investors. Esh