Ann: Abundant visible gold intersected in wide zo, page-24

re: Ann: Abundant visible gold intersected in... eatingapple,

I check every HEG announcement and report what I see. I view "ramping" as fraudulent misrepresentation and I don't do it. I am very careful to put qualifying statements on my estimations and I stand by all of them. That is why I take the trouble to explain my assessments to people such as yourself. Up to a point. With you, I have now reached that point so this will be your last explanation from me for a while at least.

You do not understand that drilling alone cannot determine the grade of extreme nuggety gold mineralisation. You mistakenly use the offensive words "ramp" and "ramping" through your ignorance. You are not alone. All of the Lachlan Fold Belt goldies tend to be undervalued though your kind of ignorance. Many investors want to see three years JORC reserves to confirm forward production. Lachlan Fold Belt goldminers are only able to confirm grade by mining. This means JORC reserves can only be produced when an orebody has been partly mined. HEG has been able to determine JORC resources for some of their narrow veins through a clever program of mini bulk sampling coupled with drilling for structure. Even this technique has a tendency to underestimate grade. For their wide orebodies, HEG would need to develop drives with minimum 3mX3m dimensions if they were to do minibulk sampling. Imo they will not do this. Instead they will drill out the structures and trial mine. This requires a decision to mine based on limited information painstakingly collected over many months.

I respect HEG for their competence and the quality of their tenements. I do invest in the company. Long term investment based on much more than the desire to profit. Helping build a successful enterprise is actually rewarding in itself. Successful companies can contribute much more to a community than the dollar value of their products. HEG actually helps sustain local communities out as far as Bathurst and Mudgee. I respect that and I'm proud to have contributed my investment dollars over the years.

That said, I trade a proportion of my HEG and I trade HEGOB as well. Over the next 5 weeks or so I expect HEGOB to fluctuate significantly in the period towards option expiry. I will certainly be looking for trading opportunity and I expect many others will be doing the same. Good on you all but please be aware that we are in the riskier phase of option trading. My investment in HEGOB right now is strictly limited to free carried funds I can afford to lose. I'm not expecting to lose. In fact I'm planning to have a pile of HEGOB to convert at the end of September. $$$ spent exercising HEGOB go to the company to fund an expanding program of work. I am very confident that the expansion of Hawkins Hill/ Reward will be profitable and I am anticipating positive results for the Hargraves exploration as well.

Now to touch on eatingapple's little whinge about BDG.

JORC resource/reserve potential for BDG is associated with their Henty Mine in Tassie. Its isn't in the Lachan Fold Belt and doesn't have the nuggety gold problem. (What a problem to have aye!!! Mining gold in big chunks rather than minute specks!!!)