Ann: Update on Mining at Rose of Denmark Gold Mine, page-40

Mal, life has been good. I still have your number. I'll text you mine. I'm pleased that the owners of old MCO ground in ROD have found something that looks promising and within reach. When we walked around the adit and the engine chamber, there wasn't too many clues as to what exactly the ore zones looked like, whereas in the morning star mine it was obvious in it's distinct reefs. AUL have found gold in the drilling in what appears to be lenses or reefs, but from the photos they don't resemble any reef I've seen at morning star. They seem to be fractured/ shattered diorite infilled with gold bearing quartz. The interesting part is that there are not many impurities in sulphides and iron which is common in almost all reefs in the morning star. This is not bad considering that the mill is entirely a gravity one. It will separate the gold better meaning very good recoveries and leave less nasty middlings in sulphides.

The huge challenge will be the sorting of mined material ie ore and waste. Aurifice has mentioned this issue a number of times and rightly so. It was something that MCO couldn't get right. I hope AUL do. In regards to finding good grades in enough volume, I think they are looking fairly good considering the drilling strike rate, but it will all come down to how well they modify the mining and sorting to mill feed.