gold symposium - att hotrock, page-2

Hi Cogs,

Just to let you know I held MYG shares last year.or should I say I traded them and did very well. It was bot infested (my opinion)at the stage I held..High Volume and very volatile..got in and got out.

I didn't buy because I thought it was a one day wonder..it had some meat in the sandwich from my perspective.

I also invested in IGR at the same time and got slightly burnt ...I could not believe it at the time ..they were going to production.

Gold stocks have not been exactly brilliant over the last 12 months,even though the POG has increased to historical highs and has held up quite well over the last 6 months.

Why is this so?? It's not me and it's not you ..maybe it's the high frequency,high volume traders or the Hedge funds shorting and then going long only to short soon after...they make it going down and up..you and I are out of control in situations like this. One of my brokers told me,in his opinion, last week, that 60% of the trades on the ASX are High Frequency Algorithm trades.

It's worse in the US.

Anyway, yes I did go to the Symposium,invited by a PNG Cu mine developer.

I stopped by the Mutiny Gold exhibit and said Hi to a couple of people manning the exhibit.I just grabbed the hard copy presentation and moved on.

I've got to tell you the event was a fizzer from my point of view at the exhibition side of things..Luna Park is not the place to exhibit on a bloody hot day with 100% humidity.

So,Mutiny have Credi Suisse paying for the DFS on Gullewa...that's very good and the trade off is a 50,000 oz gold hedge. Break even is $800/oz .. not too bad.

I think the JORC needs to be 1M oz..it's now 590oz (measured to inferred) and a bit on the low side to be world class.

But from my Iron Ore bent .. it may have Hematite DSO and Magnetite in the Brandy Hill area ..not bad at all.It's a diverse Co with $14 Mill cash and a small MC of $33Mill aaprox.Upside is that the SP is sub 10c..I remember paying a lot more a year ago and made a good return.

The Gold stocks,per se, seem to be attracting market attention again and so they should.I could never understand
why the gold stocks dropped substantially over the last 12 months whilst the POG rose substantially.

My view is that this stock should be in the 20's..but that is strictly my biased opinion.

You only need to look at the dramatic rise in the ERM SP to tell you that MYG is undervalued..once again it''s my opinion.

ERM are near tennant creek .. there are many difficulties associated with extracting the Gold from an OICG system in the Warrego region.The costs to extract are huge,albiet they do have the warrego crusher/Mill/proceesing facility there...but they have to dig the stuff out...Energy and water costs are very expensive in NT.

So getting back to MYG ... It's one of my small scale favourites..as one of my Capital Market associates said to me recently (successfully and heavily involved in Gold explorers/developers/budding producers), Small is sweet!
I can't tell you any more than that.He raised capital for one or two of the Exhibitors at the Symposium.

Grades are reasonable,costs seem to good providing the Gold price does not tank before they start producing,I can't see a glut of gold coming up in the foreseable future.

Bonus is some copper..25Kt is about $187Mill gross revenue which could viewed as a credit against the $800 Au recovery costs..unless of course that has been factored into that equation already...must check it out.

By the way,we are trading 160Koz Au cau1ght up in magentite and it has already been mined and above ground.Extracting the Gold from an IOCG ore is not easy or cheap.We are looking to ship out on ROM basis..it's a lot cheaper and thus,more profitable...but we do not need to disclose anything about it since we are a private company and trade off market...but we do know a thing or two about the guts and glory of trading the Ff by products eg Gold/Cu/Co/Bi or vice versa.

Hope that helps...Keep the Mutiny going!

Cheers

HR

Absolutely no advice..I do not hold any stock on the ASX at the moment,but that's my choice..I would rather trade the end products,it's more reliable.It's not for everyone and far from easy and you could set yourself on fire very quickly with one bad physical trade.

PS ; No time for spelling and Grammar checks..That's how it is..I type as I think...most times the thinking is faster than my typing.