spoke to hugh

Gday lads,

Well I had a good chat to Hugh today, alot was discussed, everything from Gunson, Pantheon and current drillings.

Well, drilling is on schedule and going well. He obviously doesn't have any more info at this stage other than that. Xstrata are yet to hit target depth, but it can be expected in the next week I'd say. Once that happens, we can expect an update.

Xstrata have very experienced geologist on site at the drilling, so we could expect them to confirm the mineralisation and no doubt they will have an idea of grades but not likely to release before assay results.

They are drilling Oak first due to the SA govt funding of $60k and it expiring soon. So that answers that.

They are only planning one hole at both Oak and Winjabbie at this stage to get an idea and confirm mineralisation.

But they may decide to drill more than one if they wish.

Obviously mineralisation has already been confirmed at Emmie Nth as an extension of Gunson.

Hugh is really excited as a geologist of the huge Oak struture, its a couple of KM's wide and deep.

We discussed thoughts of Xstrata's involvement in Gunson and AXT, but I will keep those thoughts to myself.

Pantheon have been increasing their acreage and he stated that its not about if they have oil/gas, just a matter of how much and how quickly they can flow it. So he is very upbeat on Pantheon.

All in all, im very confident and happy with procedings, AXT is still very much undervalued.

If you have an other questions let me know, we discussed alot for about 30mins so no doubt he answered it.