Ann: Quarterly Activities and Cashflow Report, page-116

nab - dealing with an operation where no-one has had the confidence to sign off on a reserve indicates high risk. Trial mining indicating a 30% grade overcall . . being extremely narrow, high-grade nuggety quartz veins ANY amount of oreloss is going to have a significant impact on gold production .. add in high-costs associated with location, weather events . . . there is a host of reasons that suggest this is a high-risk operation that could fall short of the mark.

At this stage of the game, a mining company should have ALL exploration activities on hold. Focus should be on short-term planning, grade control and reconciliation. Got the next quarter to sort all these issues out before the wet kicks in.