Ann: Suspension from Official Quotation, page-107

Thanks SMR.

I'm certainly not saying such a tap would work real time like a tap or that the potential geothermal water source is THE major contributor to the current emerging excellent numbers at Candelas to date. As u guys say it could be a contributor but its more likely that sudden climate change has resulted in much quicker surface water flows which would inevitably lead to Candelas being filled to overflow and then this flowing into the GXY acreage and into HM.

With Candelas full of the brines already and these fluids taking possibly millennia to make their way thru the strata its a very slow process.

One of the major questions for me is WHY this acreage was sold given its generally known as a major high grade Li source ?

In reality and thinking about this as a geological time model with the massive volumes we are talking about servicing HM that its highly likely that ANY tap effect would be negated by the fact that we are talking about a potential 3 to 5 km interface with GXY acreage and its pretty hard to put a tap on such a wide basin boundary.

Is it possible for GLN to draw enuf brine from Candelas that it might effect the subterranean flow of bribes into GXY acreage and then HM?

Given the capacity to mine such a potentially large Candelas resource over time GLN probably won't be able to draw/pump enuf brine to effect the discharge into the lower acreage and this is why the majors below probably arnt too worried re GLN.

In other words theres enuf to go around.

But from the numbers so far and the fact that GLN mentioned the drilling fluids r probably under-reporting the brine grades, and Mattillas reverse basin structure is correct then we may have a secondary brine concentrating situation at Candelas which may give us another 10 to 20 % of brine concentration in certain parts of the strata that r more amenable to holding the higher grade bribes.

And then theres the potential for Li from hydrothermal which MIGHT concentrate the brines yet again. A lot here would depend on firstly the hydrothermals as a decent brine source and secondly the potential CUMULATIVE chemical interactions that would need to occur for such a scenario to work.

So unless the Candelas brine analysis and data/modelling support this possibility its once again all conjecture.

I suppose in the end well be happy with Candelas being full of high grade brines. I just like to know why and how it works gelogically and Im sure GLN will want to be environmentally cognizant of any hydrothermal interractions they may have and how it might effect the overall Cerro Galan-Candelas-HM system IF the hydrothermals r a major contributor to water flows in arid times which I believe they might be.

Gr