Southern step out hole released yesterday. Biggest and highest grade hit to date. Still haven't found the core so could get richer at depth too. Looking like another Cadia East. Going to be a monster.

Attached is a picture of my SoTP valuation for ALK. The new resource definition at Roswell and San Antonio deposits can support a reserve of 500koz+. This will provide new life to TGO and support an 80koz p.a. prdocution rate for 5yrs+. Likely to see the ore put through the mill in CY21. Revitalised TGO worth ~$0.45/sh using peer multiple comps. ASM worth about $0.15/sh. Boda implied EV is ~$0.21/sh with a probability adjusted EV of $1.60.sh. 7.6 to 1 pay off profile on Boda exploration success. Boda is a deposit, just have to show how big and economical it can be.

Additional analysis suggests the down dip hole will strike through a rich high grade potassic core zone in the porphyry. If the result (due Feb 20) shows as such, the grade could be 2x to 3x richer than first thought. As such my high case scenario would prove to be conservative with an estimated 12Moz Au equiv potentially being in the range of 15Moz to 25Moz Au equiv.

All about the porphyry targets! Boda prospect hit 502m at grades better than NCM's nearby Cadia mine. ALK currently undergoing drilling to test depth and strike. Program could define a resource as big as 600m (L) by 250m (W) by up to 1200m (D). Assuming SG of 2.5x and step outs are consistent with KSDD003 discovery hole, the resource could range from ~170Mt to ~450Mt of bulk Au Cu grade. This implies an EV of ~$600m to ~$2100m or SP value of ~$1.05/sh to ~$3.69/sh. SP of writing is $0.67.