In discussing AT-12, Genuity mention:

"Early days with only two holes at AT12, but it is in a similar geological setting as Eagle One –

The new discovery at AT12 consists of nickel-copper "disseminated to semi-massive sulphide mineralization", so we do not expect the ultrahigh Ni grades of Eagle One massive sulphide mineralization. However, it is only two holes and the host peridotite and footwall granodiorite are similar to Eagle One."

It was pointed out to me that this may be perceived negatively, as some may read it that Genuity think AT-12 is unlikely to match E1.

It is important to notice that their comment about the disseminated and semi-massive sulphides only pertain to the two holes that were drilled - it is true, for these two holes, that the grades are unlikley to match E1.

However, it is also important to notice that is not the same as saying that is is unlikley AT-12 will match E1. As Genuity point out, its only two holes that have been drilled, and nothing about those two holes precludes the possibility that NOT will drill other holes that contain massive sulphides. In fact, Genuity leave open this possibility by pointing out the similarity of the geological setting of AT-12 and E1, and seem to like the propsects for AT-12.

I have said privately that AT-12 is the most significant thing that NOT has drilled since the E1 discovery, and much more signifcant than E2, but you wouldn't know it from the market action. However, the market is a very different animal than it was in February/March, and also NOT needs to work hard to restore the confidence in the RoF story that will have been lost with the, to date, dismal results of E2, and the other anomaly duds.

It will be very interesting to see what the third and other holes reveal at AT-12 ...

Regards,

B.

B.