accumulation and trading, page-31

Hi grahay4,

The "cash flowing" at present is negative and the cash reserve by the
end of March will be lower still. There is a question of by how much?

Another unexpected snag later on could see a significant SP drop
and companies prefer to maintain a comfortable cash buffer by doing a CR while the SP is reasonable. Remember what happened last April!

The problem has been caused by higher ore throughput to maintain
gold production because of progressive lower grades:-

..................................Dec Qtr.....................Sept Qtr.......................June Qtr

Ore Processed:.........260,414...................217,985.......................197,911

Grade:........................2.85.......................3.42..............................3.62

The company has not yet announced when the supplimentary high grade
ore from the UG operation will be fed into the circuit to increase grade
and destress the teritary crusher in question.

These kinds of teething problems are often encountered by emerging goldminers and can be the cause of additional CRs.

Co anns re timing of UG comming online should qualify the situation.
I'm abit dissappointed that it has taken so long to get the UG permits and
to get cracking UG because the progressive lower grade is a killer.

CC has been talking about UG for at least a year.

Cheers

Moorookamick

Cheers
Moorookamick