conversation with ge, page-21

Great leading post there Timber.

So all those delay issues sound like they are being brought to closure. Everything you report GE as saying makes sense; the groundwater was just a matter of time to achieve sufficent draw down and sustainable pump rates; the sticky ore - that probably should have been picked up by more thorough testing but overcome now; the silt in the pit - a bit embarrassing perhaps, someone could have foreseen that, but it wouldn't have made much difference as it probably could only be moved by bucket and truck anyway.

On the groundwater, my understanding is that most of it is intercepted before it reaches the pit on the east side, which also reduces the hydraulic load on that wall, thus reducing the risk of another collapse.

As for rainfall - it rains heaps more in Surigao than Manila and Surigao can cop heavy rain all year round - but statistically rain is most likely from Nov - Apr. However, the mine location should facilitate reasonably effective storm management practices. As for Manila, all those flood issues are excaserbated by infrastructure deficiencies, bad (non-existant) planning, and being close to sea level.

As for the recent policy - the Philippines is pretty much a closed shop for new operations ATM, including even for new exploration applications. No one is happy about that - but existing shows are OK to carry on. Any new legislation to change the fiscal rules is probably eons away.

One thing I would have liked to have read was how many tons are going through the plant at the moment. Still awaiting some production numbers to indicate full operational capacity.