GobiMin Inc. V.GMN

RE: Sawayaerdan has > 3.0 million oz of gold

[goldpig]

I am sure I speak for many when I thank you for digging up such great details about this gold deposit.
Understatement is nature of Gobi management, and the  brief description of this acquisition is no expection.

Some points leap out at you.

First, the drills have only gone down to a true vertiical depth of about 250 m.
But, the IP survey detected   additional buried sub-parrellel zones. These are undoubtedly the deeper sulphide rock which is the source of the surface oxide resource that has been defined by drill data to date.

Source rocks are always higher in  grade than the weathered oxide gold. Volumes may be more or less depending on the age of the fault and the erosional intensity. In this case , adjacent discoveries show that the deeper source rocks can contain substantial volumes of higher grade ore.

Secondly, trenches and drill cores show that the gold mineralization  is dispersed  from the surface downward and is widely dessiminated.
This means a very low strip ratio , and cheap cash costs.

Thirdly, the cut-off grade can now be much lower , with gold over $1000 per oz.
Along with 2006 and 2007 drilling data which extended the strike by about 800 m ,this means that the new 43-101 for Zone 1V will contain significantly more gold than the 1.4 million oz already estimated from earlier information.

By any standards, management have pulled off quite an investment here.