Hey gang,

I am not happy with the market's response to this latest release, but I haven't been happy with the market's response to any decent news releases lately. Anyway here are my thoughts about the news.

Hole 164 is a deep twin hole to the previously reported hole 157. Both are drilled at a dip angle that approximates the dip of the deposit and so we get two holes with fantastic lenght of the intercept that containing higher than baseline levels of gold. To me this indicates that we have a resource that continues at depth, as we have always suspected and that the hole 157 was not just a "lucky" one time only event.

These quartz veins are not perfect geometric shapes - they twist and turn and snake. Thus for two holes such as these to stay in mineralization to the depths where they were stopped is very significant. Our prior bulk sampling data would suggest that the gold is not uniformly distriuted across the width of the vein but rather that there is a concentration in the centre of the veins with gold concentrations decreasing toward the outer edges. . As for the slightly lower grades in 164, maybe that can be partly explained by the fact that this hole was slightly off the centre of the vein or missed the edge of the snaking vein at certain depths. What I do like is that the gold in 164 was found at apparently different depths relative to 157 suggesting a continuity of the deposit along its z axis. In this regard I think the holes complement each other fairly nicely. We all know how lucky we need to be to get good fire assays based on the known nugget effect, and the compounding effect of sampling issues with the fire assay (including the decsion to forego total pulp metallic in the current protocol). When all these factors are all taken into consideration I really like these numbers.

The news release also speaks of total gold determination as a new strategy and this is interesting to see. I am not sure what volume of quartz/diorite core will be used for this type of analysis but presumably if they can get something close to Jim Tilsley's magic tonnage number for accurate grade determination by bulk sampling, then we may start to see numbers on the order of 3-4 g/t (or higher) as has been discussed previously.

Best,

Scott