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So far in 2015, three trenches have been completed in the area covering the smallest proposed pit located furthest west with channel sampling from the middle trench, TR15-11, returning 6.05 g/t Au over 8 m including 14.98 g/t Au over 3 m.

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Message: NSR for shareholders?

"The Company intends to implement the NSR prior to production so it will be available at such time as gold production commences. Under the current resource estimates at 1 g/t gold, the number of gold ounces that existing common shareholders are entitled to is 69,900 ounces of gold. This works out to 0.232 ounces per 1,000 shares in the case of 69,600 ounces based on 300 million shares outstanding over the entirety of the mining project as supported by the current resource."

Since the new report estimates 3.1million ounces, this 1% NSR would equal around 0.69 ozs per 1,000 shares (over the life of the mine).

However, Mr Basa also stated that for each 1 million ozs he intends to increase the NSR by a further 1%, so that 3million ozs would pay a 3% NSR. I think this improbably rich, but certainly wouldn't reject this if offered.

A 3%NSR on 3million ozs would be roughly the net return on 2 ounces per 1,000 shares. Present estimates at current gold prices give a net of about $400 to $500 per ounce, or $800 to $1,000 per 1,000 shares, over the life of the mine.

Value that how you like, it is well above the present market price of 2.5-3cents per share, especially when it seems very likely exploration will increase the estimated gold in the ground.

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