Ann: INFILL DRILLING RETURNS HIGH GRADE GOLD INTERCEPTS - KAT GAP, page-38

Sounds wrong if you are an accountant. But follow my logic. If the debt is "friendly", then administration was never going to be an option. If the debt was to a bank the company would have been insolvent years ago. Creditors shoud prefer equity to administration.

Their business plan is perfect if applied as a gold mining syndicate. The easy gold will pay the way. I dont think you need JORC compliant resources unless financiers are involved (?), cant see any chance of that at Kat Gap.

For those who dont know this is roughly how they calculate ore blocks... If they have drilled on a 10m x 10m grid and get 1m@62g/t...that single intersection represents an ore block of 10m width, 10m height and 1m thick...100 cubic metres @ 2.5 SG = 250t....250t @ $5,000 t.= $1.25 million. The Gecco plant is rated at 30t /hr so treating high grade pods could produce $ 1 million/day.

That solves the "next steps" in financing options but since that doesn't appear to be their plan then I dont know. Do they have enough money to pay for more drilling and get producing gold?