82% of options converted by holders, page-46

Tango

You wrote

"Even with crappy assets good management can make it work. I highly doubt PXG will go into something just because it feels charitable.. there must be money to be made or it is trying to protect the interests in getting the mill functional (toll treatment of pxg ore). "

Poster plough has worked in the mining industry and shares a common investment with you in CVR, so perhaps you will take more note of what he says about KMC than a simple economist/accountant like me.

I highly recommend you read his posts on the KMC thread. Two links are provided below:

http://hotcopper.com.au/post_threadview.asp?fid=1&tid=1486838&msgno=6861185#6861185

http://hotcopper.com.au/post_single.asp?fid=1&tid=1675692&msgid=9676665

The KMC accounts to end 31 December 2011 make interesting reading - loss of $19m over 6 months and liabilities outstanding of over $7m, which may have grown after that date. Trade debts of over $5m. So the capital raising is to fund the immediate debts of KMC and keep it alive a bit longer.

http://www.asx.com.au/asxpdf/20120315/pdf/42520qhqvypppl.pdf

I do not know if PXG has 500k ounces within a 5km radius. Perhaps at Castle Hill - see page 28 of presentation below - or ring the company and ask them. Note that 266k ounces is in the inferred category and one does not know how much of the Castle HIll resource would be converted into reserves.

http://www.phoenixgold.com.au/media/30316/international%20roadshow%20presentation.pdf

Good luck. I only give my total trust in management of any company when I believe in angels.

loki