zones of focus, page-19

Announcing 5 zones of mining at this point in time is very interesting. The management must be confident in the way things are working out now or is this a longer term plan? I think that the management are confident, but 5 zones of mining must be a longer term goal.

The reason why I'm thinking that is that the present setup using the main shaft is ok for I'd say a maximum of 3 mining crews.( Rob correct me if I'm wrong) They also have developement work to do to get the other zones ready for mining, so logistically its impossible for them to mine all 5 zones in the very near future.

I'd say that presently they are mining Dickinsons -Shamrock reefs and probably haven't had a go at the Burns reef .I'd say Maxwells zone is ready to go but there is no way that sub level 7 (kenny zone) and perkins zone are ready because they would not have had the time to put down the rail and other services to start mining there.

That brings me to the topic which has been mentioned this last week. The river adit conversion into an access route and a decline. This has got to be in the relative short term picture if they are thinking about 5 zones of mining. This is obviously going to cost money ontop of the processing unit so its going to be an interesting how management deal with this.

I'd say that the priority is to deal with the processing unit asap so the decline will probably happen next year. If enough oppies are converted to get a plant started by the end of this year, they would be getting extra money in the bank from bullion sales early next year, so there is a chance they will be in a position before the oppies expire. After 31/3/2010 they can definitely go for it.

The management must be supremely confident to bring on this news. Its got to be a good sign also that they have not taken there eye from the big picture.

I'm quite happy to wait to see the company cash flow positive via own production, or toll milling or wait until enough oppies are converted. This has always been a longer term growth vehicle to me.

The way the management have conducted themselves and the way the sp has been going lately I'm sure has validated many true believers opinions of this company. I reckon its still got a long way to go to be valued on par with other gold companies.