Ann: Company Interview - KGL Strong Cash To Fund , page-2

re: Ann: Company Interview - KGL Strong Cash ... “We have had a difficult 12 months but are coming out of this experience in good shape. “

It’s funny when a MD suggests “we” have had a difficult twelve months. ‘He’ got paid his full remuneration, ‘we’ got shafted!

I realise that the MD is trying to sell this project to prospective shareholders but it is also funny that we here on HC get scolded for ‘ramping’ and at the same time the ASX allows companies to white wash reality with what could only be considered as unadulterated ‘ramping’.

Simon suggests that Jervios is served well by Rail and road (approx 1800km to port). Well the rail is over 250km from site along a notoriously bad road. Even with less than 10mm of rain this road can be shut down to heavy vehicles. There are dozens of crossings that flash flood and can take weeks to repair to a stage to get haulage trucks through. Where does this leave us? The Tanami Hwy that runs on a similar parallel on the other side of the Stuart Hwy has very similar issues. At times supplies to the mines have to be flown in.

We also have Rail issues when top end rain sets in. Even with minor flooding Oz minerals lost 1,200 tonnes ($7-8m) of the copper concentrate that spilled into the Edith River. Accusations that OZ polluted the river complicated the company's claim for insurance and the share price slid considerably.

This is truly an isolated project and is probably why we picked it up so cheap and why it has never been successful in past attempts. KGL need to be realistic in its communications because ‘we’ shareholders have very recently been exposed to silver linings in most of the communication on our most recent monumental failure at Murchison.

I live in hope that Jervios produces the scale that is required to make this a reality. It was the acquisition of this project (diversified assets) that got me into KGL, ironically it is now our only project.