Acadian Mining Corporation ADAIF

RE: Cut versus uncut resources

[krogh]

The 0.3 g/t is he cut-off grade. That is not the same as the cut/uncut resource. A cut resource means that any sections of the deposit with a value higher than some high cutoff (not the 0.3 g/t) are set equal to that cutoff. That is the cut. The uncut resource is hence always larger than the cut one. The cut is employed to avoid the resource to be domin ated by a few drill holes with suspiciously high values. The cut resource is a conservative estimate. Here, I think ADA used 25 g/t and 14g/t as the cut-off in different parts of the deposit. They specify it in the parameter estimation paragraph. Cheers.