RED EAGLE EXPLORATION LIMITED V.XR

RE: RE: recent results restated

[myamigo]

Hi Folks!

The 60 g/t & 15 g/t cutoff crap is just confusing the issue. It would be more helpful if we knew how much resource was left in the hole with the large g/t figures excluded. This is simple to do if we look at the interval depth and corresponding g/t figures over that interval as it relates to the total reported depth of the hole for which sampling was performed.

The following formula sums it up. 

+ TotalGPT is the reported total resource content for the hole (7.57 g/t 
  in this case)
+ IntGPT is the reported resource content for the interval (17.17 g/t 
  for the 40.89m interval)

+ IntLength is the length of the interval (40.89m for the ... 40.89m
  interval)
+ Excl_IntGPT is the resource content in the hole with the interval
  content excluded (this is the unknown)
+ TotalLength is the length over which sampling was performed
  (114.98m in this case)

This formula can be solved for the unknown...

 
... and used to calculate the resource content in the hole with the specific intervals excluded...

				Total AU
				excluding
From	To	Length	Interval	Interval
(m)	(m)	(m)	Au (G/T )	(G/T)
31.32	146.30	114.98	7.57	#N/A
31.32	33.41	2.09	316.69	1.85
31.32	72.21	40.89	17.17	2.27
115.95	146.30	30.35	5.36	8.36
173.33	186.55	13.22	1.63	8.34

The 316.69 gpt interval has a significant impact and reduces the effective content to 1.85 g/t when excluded but if you think about it this makes the economics more attractive than if the 7.57 figure was used alone. This seam is near the surface and will be very easy to mine so significant early money will be available when operations get underway. This isn't a bad thing.