management should quit, page-7

Nice to hear from you again prhb. Hope your funds have found some better action over the last two months. I am sure you will continue to watch developments for Tectonic with some interest.

Capital Costs are naturally much higher since the original 2005 feasibility work ($28.5m to generate $51m before tax and capital) - that was I think when they were proposing a haul road to RAV8 and do the processing there with upgraded plant. It is now a new ball game $125m capital costs to generate $263m before tax and capital with Trilogy being now the preferred option for the processing plant.

So yes in the current climate raising $125m plus capital for the project will be a challenge.

You suggest "Much of the increase in resource appears to be because of renewed modeling, and some of the drill holes that were billed as exciting were only a couple of metres thick."

There has been a very significant amount of infill drilling to permit remodelling of the resource and increase confidence limits. It has not just been some trick of "renewed modelling". TTR will have a JORC compliant Reserve and Resource Statement very soon.

The nature of the deposits at Kundip are:

"The mineralization generally occurs as gold-copper bearing quartz reefs. The vein systems are structurally controlled. The high grade zones present as massive pyrite, grading to sulphide rich quartz veins occurring in a series of en echelon ore lenses along large shear structures. The reefs are typically 0.5 to 2.0 metres in thickness, reaching a maximum of 10 metres where structural intersections occurs. The strike length on the major shear surfaces are typically in the range of 800 to 900 metres."

So most intersections are only ever expected to be relatively narrow in this area. However, it is the large number and length of the reefs in the Kundip precint that are presenting quite a substantial resource amenable to many small open cut mines. Also at Kundip there are numerous possible xtensions along strike and at depth and new discoveries in the waiting. I think TTR have only touched the surface with convergence of some of the extensions perhaps leading to some deeper even richer loads for underground extraction further down the track. This is what really excites management - it is the continued prospectivity of the area. Steve said the other day (repeating an earlier statement about outlasting BHPs Ravensthorpe 20 year Nickel Project) that Phillips River would be a long term project that has already outlasted BHP (lol) and would now outlast First Quantums project.

As for funding Hamish and Steve will get it done - I am sure Rudd's RSPT (or Abbott's version if Mining Tax Reform is ongoing) will be watered down and infact will have to have components that will be positive for the Phillips River Project Capital Investment through transitional or "uplift" benefits - no doubt about it!