Previous to this NR there was only one shallow hole drilled at this 1200SE, hole BL11-138 drilled to a shallow depth. Just for fun I speculated on the incremental value of these three new holes:

Based on the reported intercepts I speculate that the average grade on the three significant intersections is 4.7 gm/tonne ((2.2+10.3+1.6)/3). The vertical distance between the holes is 190 metres. I then assumed that the average width of the intersection was 35 metres, and that there are 3 tonnes of rock per cubic metre. I also assumed that the rock 50 metres on either side of the holes is of the same grade, and gold recovery would be 85%.

Therefore gold production would be: 4.7 gm/tonne * 190 metres * 100 metres * 35 metres * 3 tonnes/cubic metre * .85 recovery / 31 gm/ounce = 257,097 ounces gold.

Based on the higher grade I then assumed operating costs at $700/oz (probably high), and given the depth I discounted the values by 10% for 12 years (average time to mine). Not knowing the applicable tax rate I further assumed a 30% marginal rate.

At current market values for gold ($1700), the claculated NPV is $57 MM or $0.72/share on these new intercepts alone. At $1300 gold the addition to NPV is $0.43 based on these assumptions.