Ann: Diggers & Dealers Mining Forum Presentation, page-18

had a chat with Tom at Diggers yesterday. He's a great guy and very genuine....one thing he said made perfect sense. If they mine now they need to carry out a capital raising which at the current share price only dilutes everybodies investment. He was in the US and a few major players involved with large prospects in the past asked "whats the rush...it isnt going anywhere"! Once the resource is fully defined the share price will be higher. A capital raising to mine at that point means less dilution and more value for everybody involved.

The first excuse for not going mining was that they haven't fully defined the deposit at depath, and this is the second excuse I've seen: can't go mining now as that would involve a CR, and it is better to do the CR at higher prices.

Like a lot of things Tom says, this second excuse might make perfect sense on first appraisal, but then start thinking about it a bit more and it really doesn't.

We have seen CR after CR after CR for endless drilling. This means dilution. Whether you CR to drill, or you CR to pursue an open pit mining operation, it all means dilution. At the end of all this dilution there is no gaurantee the SP will be higher, as it will come down to what the market cap is by then. If they hit bit the bullet and gone mining, they would be generating cashflow by now.