Kangan -, page-144

PIO have 4 tenements in the Novo/PIO JV and they all appear to be right in the middle of the lag gravel story. I think these tenements amount to over 200 square kms of potential lag gravel, conglomerate and even deeper gold (ignoring any other lithium, nickel etc potential) If you take the very worst average gold bearing of 0.2 g/m2, a gold price of $2,650 per ounce, costs of $12/m2 (which may be double that will actually be incurred) with gravels at 1 metre depth (might be 1.5 or 2.0 or more) then this whole area could be worth at least $1 billion pre tax and therefore $300 million pre tax for PIO. Trading Friday at 1.1 and 1.2 may be potential buyers becoming interested in what these tenements may actually be worth. This is still a huge work in progress, but will be watching with interest what the PIO trades are over the next few months and what announcements Novo and hopefully PIO publish regarding exploration activity on PIO tenements. Novo are definitely keen to acquire as many tenements in this area as possible (and at worst enter into a JV, like Creasy Croydon tenements in the Egina area) and also Novo invested $1million in PIO stock @ 2 cents to become a significant shareholder and would ultimately want to see a return on this investment.