Finally getting around to looking at the NR properly and have a few more thoughts.

First of all, the obvious is that everyones loves the high grade stuff and is there more of it. For me, it keeps confirming that the deposit is nuggety in nature, maybe even more than we thought before and that on average, the drill assays under estimate the grade. Obviously in this case of 6kg/t we have a gross over estimation of the grade.

However, until I looked at the drill collar location, I did not realize that holes 166 and 167 were against the strike. In the other holes with long intercepts, we were told that these holes were near vertical in nature and along strike. So we expected long intercepts. In these less vertical and against the strike holes, we got intercepts of 125m and 59m (53+6). This increases the size of our mineralized envelop considerably. Our average grade in these holes is low once you remove the high grade section but knowing that this average grade is misrepresenting our true grade is important to remember.

The bottom line is these 2 holes have considerably increased the size of our mineralized envelop and hence our tonnage. I believe this, not the 6000g/t was the real reason D&D were still buying at 25 cents and why we will see more strength in the buying in the next few weeks.

Glorieux