Ann: Updated Technical and Corporate Presentation, page-3

re: Ann: Updated Technical and Corporate Pres... Re $27mill capex;
“Due to recent results on recovery quality, ABM is currently assessing if this can be considerably reduced via scalable development including trial mining. Refer Slide 15 for details.”
Looks like they are going to scale up production through modular gravity plant additions.
Seem to be aiming for initial capex to be significantly reduced and then scale up production using cash flow.
Initial production likely lower but that might be fully offset by earlier start up (looks like targeting 2013 full scale) and reduced need for any dilutive cr through lower initial capex certainly a positive.

Re trial mining;
“Rent or purchase plant with capital cost to be finalised (budgeting ~$2M).”
$2 mill is a small dent on the $17mill cash holding.

“Targeting 10g/t recovered grade with cash cost of ~$440 per ounce producing ~3,200 ounces.
Looks like they are taking a sensible representative approach rather than biasing trial mining to the higher grade areas.
Very low targeted cash costs for such a small operation.

“The aim is to start the processing in 3 to 6 months.
The bulk sample / trial mining is intended to be carried out under an Exploration License. It is intended to apply for a full scale mineral lease in the near future.”

Overall positive and best of all, they are demonstrating a strong desire to get on with production ASAP.