Current drilling is focused on extending and upgrading status of...

Current drilling is focused on extending and upgrading status of the inferred resource at Eureka West that is not including in the current PFS.

Eureka West

973,800t @ 10.7 g/t Au and 156 g/t Ag
containing ~336koz Au and ~4.9Moz Ag.

The importance of this drilling on Eureka West is to first upgrade the JORC status to indicated which would then extend the high grade production beyond year 3 in the current PFS (Eureka main vein only). This potential upgrade will stack AND up as a serious +250kozpa Au eq company for > 5-6 years or longer at
The most recent result (26m of 24.5 g/t Au and 125 g/t Ag) again extend this wide high grade shoot at depth a further 70m and is still open at depth.

Not cheap compared to some others on EV/oz but one of the best leverage plays to exploration, gold price and future production cash flow. And imo corporate action (again) as one of the best emerging producers since BSG.

Also has $23M in cash.

For example using

250koz pa
US$150 oz cash cost
US$800 oz sale price
US$650 oz gross margin or
US$163M pa....

Main risks for 2009 are resource upgrades, capex funding and gold price.

Summary of current results below since Dec08.

Step out drilling

Note; not all TW.

26m of 24.5 g/t Au and 125 g/t Ag
32m of 34.5 g/t Au and 214 g/t Ag
1.0m of 327.1 g/t Au and 413 g/t Ag
11.3m of 10.2 g/t Au and 252 g/t Ag
10m of 17.7 g/t Au and 231 g/t Ag
8m of 8.1 g/t Au and 61 g/t Ag

31m of 52.1 g/t Au and 568 g/t Ag
2m of 11.4 g/t Au and 185 g/t Ag
12m of 6.1 g/t Au and 87 g/t Ag
1m of 44.0 g/t Au and 53 g/t Ag
6m of 20.8 g/t Au and 105 g/t Ag
5m of 7.5 g/t Au and 159 g/t Ag
16m of 5.6 g/t Au and 69 g/t Ag
7m of 12.8 g/t Au and 258 g/t Ag

Infill drilling
17m of 14.1 g/t Au and 372 g/t Ag
5m of 8.5 g/t Au and 33 g/t Ag
3m of 9.9 g/t Au and 110 g/t Ag
12.3m of 8.9 g/t Au and 116 g/t Ag
15m of 6.1 g/t Au and 40 g/t Ag
10m of 8.0 g/t Au and 91 g/t Ag
2m of 30.7 g/t Au and 121g/t Ag
10m of 8.0 g/t Au and 91 g/t Ag
29.5m of 21.2 g/t Au and 625
4.9m of 14.4 g/t Au and 156
7.75m of 6.4 g/t Au and 99 g/t Ag
3.3m of 2.7 g/t Au and 117 g/t Ag
4.0m of 8.6 g/t Au and 95 g/t Ag
16.0m of 5.8 g/t Au and 61 g/t Ag
5.0m of 29.3 g/t Au and 324 g/t Ag
12.0m of 14.4 g/t Au and 135 g/t Ag
8m of 17.0 g/t Au and 308 g/t Ag