Ann: WAF hits 6.5m at 61.8 g/t gold at M1S, page-42

Hi @Prisoner24601

Unfortunately the same thing that gets us excited about the project, the large number of ounces of gold per vertical metre per unit of strike length at M1 (4,000ozs/Vm) is also our potential Achilles heel if an offer arrives before we can prove up more ounces at depth. The unique nature of the ore shoots at M1 just play into the hands of an opportunistic acquirer because of the costs and technical challenges of drilling out the ore body at greater depth and this problem will continue to exist even when we go underground because of the more difficult problem of defining resources/reserves from point-wise radial and restricted locations UG as opposed to surface drilling along a line. Radial drilling has a high degree of divergence as you move away from where a hole is collared and if your ore body is vertical you have a good chance of missing it especially if your mine tunnels are sitting vertically above your ore body as they probably will. This probably would make more sense if I could draw a picture.

If the same grade per vertical metre at M1 was spread out over 400m or 500m of strike instead of 100m we would have already filled the back end of the mine plan to 8 years and probably still be drilling like the clappers.

People who try and deny this arguement aren't actually acknowledging the serious problem this company faces of being able to keep adding value which we all believe is undoubtably there.

DCN is sort of in a similar postion as most of its remaining inferred reources at Westralia are a little too deep to convert to reserves from surface but the difference is that they are in an inferred category already. Any independent consultant acting on behalf of the company in a TO situation would acknowledge a high likelyhood of being able to convert a decent proportion of that resource to reserves, based on the statistics of how the shallower UG resources converted.

That's why I say keep drilling at M1, at least to an inferred level of confidence. Given the strike is only about 100m, and we can use wedge holes, and we were successful in targeting the first deep drill hole, it shouldn't take that many holes to get an inferred resource down to that depth. What drill denisty is needed for this? What drill density have we adopted to define our current reserves?Esh