great summation of mko's strategy, page-10

One other thing i really like to point out to investors is the need to understand head grade results and its relevance to economic viability. This is because i hear many saying that gold juniors will need to see grades of 3-5g/t to be viable...this is an assumption that needs to be addressed.

The number of high grade deposits that are producing on the world markets are diminishing rapidly and have been disappearing for the last decade.

Alluvial mining is gone...oxide deposits are now in our rear view mirror too....as such low grade bulk tonnage operations have been all the rage in the mid 80s and 90s with the evolution of heap leach technologies in arid climates such as OZ, South America and Africa.

The next wave, however is now on hard rock, low grade bulk tonnage mines.

Worldwide trend now show decreasing grades across the board in all new greenfield and brownfield discoveries. It used to be 6g/t to 4g/t but now we have an average head grade of 3.8g/t on Underground mining.

Open pit mining average grades are 1.1g/t [according to PWC]. So anything now, depending on what its energy cost access is, could be considered a High grade mine. Many investors still think we are in the 80s...The lowest cost mines in the world are now all low grade mines and below 1.1g/t except two outliers - being Grasberg and the Goldcorp mine in Ontario.

Additionally, mining low grades always requires low cost energy. If you do not have access to cheap diesel power...the deposits are probably going to be not viable. Average price per kw is about 30-40cents kwh. World miners tend to look at the Work Index [i.e. how much energy do we need to change big rocks to small rocks to get access to the gold] - this is the primary driver in all deposits with exception of high grade zones. Investors really need to understand this key indicator when doing their due diligence.

Truly, grades is not a primary factor in deposits. Lower cutoff numbers are actually the important factor and the ratio between the head grade and the cutoff.

Because low cost energy in an infrastructure rich environment can cut lower the cutoff numbers down to 0.2g/t or 0.3g/t; if you have a 1.0g/t head grade, your ratio is now approx 4.5:1 and thus extremely cost effective and viable.

On high grade mines and on a setting of diesel with infrastructure challenges of perhaps 10g/t...and a cutoff of 5-6g/t, ratio is approx 1.7:1.

Miners tend to be concerned more with cutoffs then grades....and the relevant ratios that it brings about. MKO's Anthill and Goongarrie projects are Mine, Truck, Treat [MTT] projects. With their drill results, this is a low cost infrastructure and rich deposit scenario...cashflow should be a certainty into their coffers if they get the numbers tallying, in my opinion.

Market cap below 15 million and with 4.2 million in cash on their balance sheets will show serious upside potential. Hope new investors truly look up their drill hits and look at the geologic potential of their tenements.