Hi everyone.I am a scientist but not associated with the mining...

Hi everyone.

I am a scientist but not associated with the mining industry at all except for being in mine rescue for a 10 year period.

I would like to try to put some things in perspective as I see them from a scientific viewpoint.

Lets have a look at the size of the sample that has gone through the mill. At the AGM there had been 135K tonnes put through the mill over 3 months. An olympic size swimming pool holds roughly 1M litres of water (1000 tonnes) or about 3000 tonnes of clay. So they have put about 45 swimming pools of clay through their mill.

When they did their sampling it was over a tonnage of :

Indicated 16.9M tonnes = 5600 swimming pools
Inferred 9.1M tonnes = 3000 “
Reserve 10.1M tonnes = 3400 ‘

Total 12,000 swimming pools

So simply put they have sampled 45 out of a mountain of 12000 swimming pools of clay and now have to make a decision on whether what they have sampled is representative of the whole 12000 swimming pools. The board hasn’t done anything wrong it is just the uncertainty that is causing the problem.

Does the board shut up about their disappointment which could be due to so many reasons or do they go to the market and disclose their present predicament? Remember the original survey could be in fact correct or even higher. Its easy to say to drill more but they are already programmed to spend $2M on a revised mine plan.

Just a few thoughts and I hope I haven’t stuffed up some calculations.

Have a good night Bone