Ann: Makabingui Gold Project Update, page-16

Hi @asculpeous
Ihave been an investor for several years (since 2013)

I have attended several AGMs (where body language in conversationsbefore/after AGMs can sometimes tell more than the spoken word) and keep incontact with other investors who have significant holdings

I speak with the executive often (and encourage any that just rely on HC poststo do the same - they will always answer any questions they can and restassured they are as frustrated with the delays that come with working in Africaas all shareholders are

To answer your question, snippets that have helped me build a betterunderstanding to have a longer term outlook are:

Due to the fact that the gold price had been so low when the originalfeasibility study was done the company elected to stop drilling at Makabinguionce 1Million Oz resource was identified even though even back then it did lookas though Makabingui could be a much larger resource (so additional exploratorydrilling was halted until into production (other than the grade controldrilling that was required as we approach production) so that - even thoughthere would be dilution from raising funds until into production - the aim wasto minimise this. As @Niftiest has stated Makabingui was originally the 5th or7th best resource potential as determined by the UK geologists with Konkouto andMakabingui South expected to be #1 and #2 (Which Alex described in 1 AGM aspotential monster deposits.

I met another CEO of a different ASX listed company who's geologist wasinvolved in the initial discovery and knew the other tenement areas very well -he stated that the geologist had said that he expected that other deposits inthe BSR tenements were likely to be far more significant than Makabingui - butalso acknowledged that Makabingui was drilled out first as gold was visible atsurface there and it was prudent to follow that first

Anyone who has attended the AGMs and spoken with any of the management teamwill know that it is expected that Konkouto is the jewel in the crown - I havehad numerous discussions with

As they acknowledge - until the drilling is done to prove it they cannotannounce "expectations" - they need proof - and that will take sometime.
Regarding Konkouto, at one AGM Alex advised that the geologists had said -"you have only drilled a few thousand metres and got very good results sofar - but you need at least 100,000 metres of drilling at Konkouto to do itjustice and show its real potential" - I believe the area is a fewkilometres long and wide and there are termite mounds throughout - the termitesgo down several metres and have brought up gold throughout the Konkoutoprospect

However serious drilling will not be undertaken until the company is inproduction and can direct free cash flow to showing the real potentialavailable

The gold at Makabingui is free milling and has very high recoveries so themetallurgical side stacks up very well (and the testing completed to date showsthat Konkouto ore is the same free milling ore)

My summary (and my humble opinion only)is this:
Any developer sees a share price increase as they go through the stage we areabout to - toward - and then into production so taking some profits at thistime is a realistic place to do so - will the share price continue upwards orpull back with profit taking then - I would expect some sort of pullback withselling onto the production milestone
(I do not foresee any commissioning problems as it is a simple addition of acircuits to an existing plant that has already been commissioned and has beenon care and maintenance)
Most developers only have the one deposit, not multiple priority additionalproject targets - so the additional potential is for developer to producershare price increase - as well as additional significant discovery potentialshare price increase
I will hold until I see the "Real potential" of Konkouto andMakabingui South realised (Though we don't know how big Lafia or any of theother top half a dozen targets are until drilled)

Many will sell out along the way - when you have a stock that has sufferedlong delays there are many impatient investors who just want to get out at aprofit - and there are a number of levels that the share price will need tobreak through so I expect a saw tooth

Bassari has never been a short term investment - everything in African minerstakes longer than we wish for - but rewards are there for the most patient ofinvestors - and the Makabingui production milestone I expect to be the firstserious one of many - but over a number of years

Some will sell some once in production to be free carried for what the futureholds
My investment is intended mainly to benefit my children and grandchildren so Iam not necessarily a typical investor wanting a result in a relatively shortterm

Good luck with your investment

Cheers
IO