Ann: Frieda River Mineral Resource and Reserve Update, page-2

OK, I think this report is giving us an update based on the 2016 study by PanAust (i.e., the report which was given to HIG in January). But that is only my best guess and could be wrong. I have recently checked the PanAust website for their report on Frieda as well as progress reports on their existing copper/gold mining in Laos. I am now much more upbeat about the JV between HIG and PanAus. I advise anyone with a stake in HIG to check the PanAust website and read for yourself. My main points are as follows:
1) PanAust estimates that Frieda has an ore body of 2.7 billion tonnes containing 12 mil tonnes of copper and 19 mil oz of gold. (I think these figures are similar to those in the HIG Update, but check it anyway.) They propose a startup operation to mine 700 million tonnes of ore by open pit, then assess the results for the next stages for the remaining 2 billion tonnes.
2) PanAus has a record of mining and processing gold and copper from open pit mines in Laos. Their mines are processing about 60 million tonnes of ore per year and producing about 90,00 tonnes of copper per year, as well as about 200,000 oz of gold per year. So they have experience in this type of mining - their Laos deposits have similar grades of ore, but they have much smaller ore bodies than Frieda. Their main mining licence in Laos expires in 2021. They boast about their high safety record and good relations with the local community.
3) PanAust claims that its push for a new HIG Board is for renewal of a Board with a poor record. They say that the people they have put up as alternatives, have no link with PanAus and that **promotion blocked**s can & will monitor. Those claims are for shareholders to judge, and I will leave it at that.
In short, the Frieda mine is more than ten-fold larger in annual volume of ore and product, than the Laos mines. And that is only the startup stage. But at least they have successful experience and that's needed.


Personally I don't want HIG to sell this amazing asset (which they have reported is their intent). I feel that we are like one of the few lucky shareholders of BHP before it started to mine at Broken Hill. (Some of those shareholders lost all their shares in a game of poker.) How stupid will we be if the HIG Board sells off this once in a lifetime opportunity. Also, how stupid will we be if we let PanAus takeover Frieda (ie. 14c per share is bandied about).