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Message: Re: TD Newcrest report for March 7, 2011

I would doubt that, however it appears they, along with many others were expecting head grades that were closer to what the drilling showed. I foolishly thought the same thing after the Hinge bulk sample gave the impression they could mine these veins without hardly any dilution. The reality set in when they started mining the ore. I am still not clear as to why the Hinge produced so much "developement muck" however Stonecap layed it out quite clearly for the 007. IMO I think that TD misunderstood the explanation as to why the mill did not reflect some of the Bonanza grades we saw with hole 007 of 1700 grams per ton. Historical grades for the mine are around 8gpt and it appears that is a realistic number for most of the mining along the SAM unit, however we need to see more of the ore from the Shoreline Basalt that has bigger widths and higher grades the deeper they go. TD is justified in their disappointment with the grade as the company did very little to keep investors from dreaming the big numbers reflected in their drill cores, and by predicting 200,000 ounces per year with a 1200 ton per day mill I think Dale and company are solely responsible for the high (unmet) expectations.

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