uh oh, page-7

Thing is, the company has a choice. In corner A, they can pursue one serious prospect for income, pour their time and money into it, and leave their other prospects on the backburner until such time as the main game is up and running and producing an income.

In corner B, they can split their focus across several prospects, spending money on each.

The prudent course of action is the first: focus on something that is highly likely to be a money maker for the company, and worry about the other prospects once there is a cash flow. If the company is really lucky, that cash flow will pay operating costs and produce enough income to explore one or two other tenements. Going down the second course will just distract the company's focus, burn through a whole lot of extra cash, and probably not add enough value to be worthwhile.

So, my view: yes, the company does have other options, but I believe they are doing the right thing in terms of the burn rate by focusing on Ngualla, with the bare minimum being done on everything else to minimise the burn. They've made their choice; making serious moves on other prospects would send very mixed signals to the market - and I would be headed straight for the door. Say what you will about the way the company has raised capital in the past year, this, at least, is one area where I firmly believe they are spot on.