bleeding, page-27

Gm - The current Ev/res for AMX is still very very low compared to other co's.

Why is this ? ...Question marks obviously remain surrounding project viability at konks. The market evaluation of konks currently suggests that its greatly discounting the project due to unknown cost factors associated with some tricky metalurgy and milling methods etc.. The company has not really given any official guidance on projected cash costs , cappex etc, so analysts have been left to work with their own very conservative evaluations to this point.

This will remain until they can produce the PFS later this quarter , which will answer some key questions regarding cash costs, cappex etc ....

On the exploration front , AMX have been operating on a kind of "trial and error" method [imo] to a degree , given the lack of assays to help keep them on the right path. This method obviously is highly ineffective and costly , but little other alternative is really available until they can improve assay lead times.

This is where Kitto will have to use his geological nouse to find those areas of concentrated mineralisation (like konks). There will likely be other areas like this, but you don't know for sure until you find it. As gundi said , the gold is where it is , not always where the best looking rocks are on the surface. They have a tricky mineralised system that doesn't seem to have any consistant direction or host rocks types.

One thing IS for sure , they do find gold pretty much everywhere they drill on and off that sheer zone, so we know the mineralised system is large and gold contained throughout . But they need to find the areas of concentrated gold, this is key.

The more they drill , the more they understand and closer the next big find becomes. But as always , its a race between time and cash. Currently they are not winning that race.

But one set of assays can change all that.... hopefully that set is not far away.