The drilling appears to confirm that the mineralised quartz veins pinch and swell, and where vein quartz was not intersected gold was generally present at significantly lower levels. Holes SMD-028 to SMD-040 were drilled to test the down-dip extension of the MVZ, under the old underground workings. Most holes intersected typically narrow zones of mineralisation, at generally lower grades than were returned from the phase 1 RC programme, with intersections including 11.56 g/t Au over a 1.66m interval, from 184.46m downhole depth (hole SMD-038) and 13.65 g/t Au, 7.5 g/t Ag and 0.11% Cu over a 0.75m interval, from 178.60m downhole depth (hole SMD-037).

The diamond drilling confirms that the mineralisation appears to be quite tightly restricted to the quartz veins with limited dispersal into the adjacent wall rocks as is generally also the case in the MVZ-EX. The mineralised widths are typically narrow and less than 2m in downhole width, although in one hole the mineralised zone appears to be somewhat wider, but has been partially stoped out by a late felsic dyke (hole SMD-029). The drilling also indicates that the MVZ is shallowing out at depth, and appears to be merging with the Central Vein structural zone ("CVZ").

The drilling also intersected narrow zones of mineralisation on the CVZ, for example 6.22 g/t Au over a 0.93m interval, from 75.17m downhole depth (hole SMD-029). Furthermore, near-surface narrow zones of mineralisation associated with shallow SE-dipping quartz veins were intersected in several holes, returning intersections including 10.70 g/t Au over a 0.70m interval, from 12.30m downhole depth (hole SMD-035) and 1.64 g/t Au over a 4.00m interval, from 3.20m downhole depth (hole SMD-037). These veins were channel sampled earlier this year, returning broader mineralised intervals at surface including 2.80 g/t Au over a 39.3m interval.

Holes SMD-045 and SMP-046 were drilled to test the Eastern Adit Vein, which was previously exploited underground from a British-era adit, and also more recently at surface by artisanal miners. Both holes intercepted narrow mineralised zones returning intersections of 3.11 g/t Au over a 1.57m interval, from 42.25m downhole depth (hole SMD-046), and 1.57 g/t Au over a 1.00m interval, from 52.60m (hole SMD-037). Holes SMD-024 and SMD-041 were drilled to twin RC hole SMP-018 which returned an intersection of 11.98 g/t Au over an interval of 16m from 61m depth, including 36.03 g/t Au over 4 metres from 61m, associated with an oxidised quartz vein in the MVZ-EX zone.

Hole SMD-042 collared 1m to the west of SMP-018 returned a mineralised intersection of 2.30 g/t Au over an interval of 2.35m, from 59.80m depth, but clearly intercepted the same oxidised and heavily sheared quartz vein in the RC hole. Due to the discrepancy in the results of SMD-024 and SMP-018 a second twin hole was drilled, SMD-041, this time at PQ size. SMD-041 returned an intersection of 10.40 g/t Au over an interval of 1.94m, from 63.00m depth, and also intercepted a strongly oxidised and heavily sheared zone, but with very little vein quartz and some core loss.

It is quite apparent that the RC hole SMP-018 and its 2 twin diamond holes SMP-024 and SMD-041 intersected the same mineralised structure, but returned very significant differences in grade. This is interpreted as being a response to the irregular distribution of coarse, nuggety gold as has been previously identified from the RC programme, and has been now confirmed by the phase 2 diamond drilling programme. Visible gold was identified in the core from several holes, for example in hole SMD-032, from which a sample containing logged visible gold assayed 3.92 g/t Au, whereas a field duplicate sample assayed 11.05 g/t Au.

Furthermore core orientation data as well as the depths of the structures in the 3 holes suggests that the shearing and vein quartz associated with the mineralisation intercepted in SMP-018, SMD-024 and SMD-041 was striking to the north-northwest, and dipping east-northeast. Secondly the 2 twin holes have clearly shown that the wide intersection returned from the RC hole SMP-018 is incorrect, and is a result of downhole contamination, with the gold being smeared down the hole from the mineralised structure during the RC drilling process. While this is a rare event it is a recognised potential issue with coarse gold in RC drilling.

Hole SMD-043 was also drilled on the MVZ-EX zone, twinning RC hole SMP-017 which returned an intersection of 5.73 g/t Au over an interval of 14m from 56m depth, including 2 higher grade zones in a lower grade background associated with altered rock. SMD-043 was collared approximately 1m behind SMP-017 and returned an intersection of 3.16 g/t Au over an interval of 13.96m from 57.42m depth, from a zone of strongly sheared and heavily phyllic altered rock. The wider intersection again included higher grade zones notably a high grade pyrite bearing quartz vein between 69.65-70.31m.

SMD-043 confirms the mineralised interval from SMP-017, although the overall grade of the mineralised interval is significantly lower than that in the RC hole. Hole SMD-038 was designed to twin a deep intersection of the MVZ from RC hole SMP-004, which returned an intersection of 12.45 g/t Au over an interval of 2m from 184m downhole depth. The HQ size diamond hole returned a very similar intersection of 11.56 g/t Au over an interval of 1.66m from 184.46m downhole depth, confirming the validity of the RC intersection.

SMD-038 also intercepted mineralisation associated with the near surface flat-lying veins and on the CVZ, which returned similar results to those from SMP-004. A number of conclusions are drawn from the DD-RC twinning exercise. The first is that the diamond holes have largely confirmed the results from the RC drilling, both in terms of the geological interpretation at Semna, and also the location of the mineralised veins and structures, notwithstanding the results of the 2 diamond twins of SMP-018, where downhole contamination was clearly an issue, associated with coarse gold.

Despite the difference in the returned grades both the twin holes clearly intercepted the same mineralised structure at the top of the SMP-018 intersection, and it is therefore concluded that the high grade assays from the top 2-3m of the mineralised intersection in hole SMP-018 can be considered valid. Correlation between the mineralised intervals from the other 2 twin diamond holes and the original RC holes were good.