Ann: Thick Gold Intercepts at Lake Austin North, Cue, page-5

jefferies2

To my (also untutored) eyes the ann is fairly luke warm. The new drilling results from holes 48 and 49 have very thick intercepts but of low grade gold. Even the "higher grade" sub-intervals are mostly under 2gpt which is too low for underground mining depths. The re-assayed 1m core sections from previously-drilled hole 39 has the only decent hit with 20m @6gpt incl. 5m @ 15gpt. Also, the reported widths are nowhere near "true-width" as the holes strike the mineralisation at acute angles ("near-parallel" I think the ann mentions?).

On a more positive note, it looks like Lake Austin Nth does host a large gold system and that is what is "exciting". The trick will be to find sufficient large high grade zones (or even a single large bonanza grade zone) within the broader low grade mineralisation. They are still coming to terms with the geology and seem keen to start diamond drilling to get better core information. They believe they may not have intersected a potential large higher-grade zone as yet ...