Ann: Cascavel Mine commissioning update-OGX.AX, page-15

Hi Kookaburra,

When I say no need to hurry I mean I don't think the true value of the company will be crystalized until the production at least reaches the full capacity of the treatment facilities and there is an indication from the company that they might be able to mine at a rate exceeding the plant capacity. Obviously this "crystallization" will also coincide with proof that a high average grade can be continuously sustained as well. I think OGX would only need a grade of 9-10 g/t to be succeed "in the long run" as long as they can expand production at that grade to + 100,000t/pa and the ore is found to actually be more or less continuous to the depth they have claimed to have drilled (ie 600m).

Of course you might see price spikes and dips along the way but investors will only stay in the stock if the mine is proved. A cynical person might suggest that the company could do all in its power to make the first production run look very good. After all they can visually select the ore from under ground. The test will be time, and that's were the true value will (or will not) be delivered. I read on their website that the current licence only extends to 50,000t/pa of production so they will need to apply and be granted a licence extension to allow them to produce at full capacity. I think it is fair to say they will need 12 to 18 months to bed down the mine, obtain the licence extension and prove to the market that the mine can produce at a consistent and reliable grade. Then you have the potential upside of exploration n this time. If they can get through all this without further dilution that would be a very good start.

In answer to your second question. I'm always on the hunt for new opportunities and just stumbled across OGX when it was cross promoted by someone on HC. Not sure who they were. Eshmun