png to hand resources back to landowners, page-20

"tarecq - don't you think the whole purpose of HC is to share information good, bad and ugly?"

Yes. And it is also a place to share one's opinion, and read the opinions of others. Hence my post. I gave my opinion on the "information" that was posted, and continue to read the interpretation offered by other posters.



" the PNG govt announcement does potentially have massive ramifications for all PNG explores and producers. You have no idea whether media coverage has over or under done the importance of this yet. Unless you have a highly place source in the PNG govt......"

That's my point. We're talking about what could "potentially" happen. There are a million different "potential" scenarios so instead of speculating about them all I'm going to sit tight and wait for drilling commencement, completion, and results.

If there is then some concrete news regarding what we have been talking about and it materially affects MGK's prospects I am sure the company will release an announcement to shareholders addressing this issue. For the time being, I'm happy to sit tight and buy the dips.

I don't know what people are thinking. It's not like the government has infinite funds or they'd never give anyone mineral rights in the first place. They would keep them to themselves and drill a hole in every square metre of tenure.

But this is not the case. Funds are needed. Lots of money needs to go into the dirt before any of it pays out.

There will ALWAYS be a role for private explorers, and since most of the locals (generally speaking) don't have the experience or capital to exploit the mineral wealth of their land, foreign explorers will do that for them, and good companies will do it WITH them.

In Africa, and Indonesia, a lot of companies are making a lot of money with a portion of their equity attributed to a government body. There is a plus-side to this, it's not all bad news - Give the local government an interest in your project and you may find certain obstacles disappear rather quickly eg permitting and approvals. Often waiting times for such things can cost you more profit than if you just gave the government an equity in the project to begin with.

But again, I'm not here to recite every potential scenario.

Because at the end of the day, MGK is the current owner, we own 100%, and we're drilling any minute now. Any more news like this is just a bonus as it shows where world leaders believe the gold price is headed. And now you've got blokes like Chavez leading the charge requesting delivery of his 200tonnes (which Bank of England will have to find somewhere because no one thinks they have it. hmmmmm).

If MGK drill the two targets with success, and release the results with gold breaking 2000 in the back drop, there is no telling how high it could go. So I'm going to focus on this. This is the reason I bought, and continue to hold.

I took sovereign risk into account when I made my decision to buy in, I hope others did too!

All the best to holders