Question: When did you first hear of QC issues?

We get QC issues with the labs all the time. We go back to them, they redo it and case closed. In this case, the errors kept coming back and we were so delayed that we had to go public. SGS labs are the biggest in the world, they actually set the standards by which other labs work. It is very unfortunate that this delay has happened. I would think they would put out a NR about this but who knows, they are so lackadasikle (sp? his exact word) about this that it is frustrating.

Question 2: Can you still see the results and use them to guide the field work?

No we cannot. Our chief QC person makes those decisions and if they fail QC, we do not get access to them.

Question 3: Has this slowed down the work at McFauld's

No it has not. We continue drilling with drills at AT2 and AT3 (he did not use the term E2 and E3...) However, it is slowing down the 43-101 as 6 drill cores are from E1 and are needed to complete the study. So this is why the 43-101 is so far behind our original timeline. We had to go back and drill E1 again to satisfy the Engineering group and unfortunatly, those holes are part of the ones that have QC issues. If we do not get results in a timely manner from SGS, we may have to take our half cores, cut them in half again and send them out to ACTLabs but we hope this will not be necessary.

Question 4: Where is our 3rd drill?

It is sitting idle during the break up. No sense in having a third crew there during break up if we cannot handle the cores. As soon as break up is over, we will start drilling again with that third drill on other nearby anomalies.

Question 5: Our we still supposed to get a 4th drill after break up?

Yes we are. However we will be using this one for our JVs, probably WSR first as they have good geophysical targets identified.

He was a little frustrated by all the lab issues, I have a feeling he has had to answer similar questions often since the NR but he insisted on telling me that although the delays are unfortunate, it has no bearing on our blue sky and for me to be patient. I told him I was in this for the long haul and that I appreciate everything he is doing for us and with that I hung up.

Long on NOT as usual, we are up 0.28$ so far today...Go NOT Go, Go HABS Go!!

Glorieux