resource estimates, page-12

I had an average size holding (about 300,000 shares) but am probably an example of the average shareholder who has limited funds to put to these companies.

I do like GCR but with the market in the middle of a sustained resources boom there are many opportunities out there.

For what it is worth I moved into RBM.

They have a much smaller resource but are getting Cu grades around 2.50%.

I believe one of the other reasons for the GCR flatness and lack of enthusiasm for it is stocks like URL.

URL have been heading down the same path as GCR, but are about 1 year ahead and were unable to get finance for their Roseby Copper Project.

This scares the market and unfortunately there are similarities to GCR and CH such as lower grades etc. My memory is that URL average grade is about 0.70% Cu and a small % of gold but the 130 mill tonnes was scattered over a number of deposits over roughly a 12 km area. This may have been a factor in the high capital cost for the project.

Who knows with CH's financing issues in 18 months time.

I believe they will have a good chance of getting finance if:-

(a) as you guys have said, they get the resource up over 250 mill tonnes

(b) they keep the capital costs below say $250 mill (one of URL's issues I believe is that their capital cost was about $330 mill) on a resource of about 130 mill tonnes

(c) while I don't know URL as well as GCR, GCR may have better infrastructure (railway line to door etc). I guess this is already reflected in the lower capital costs (hopefully).

(d) GCR have a mix of copper and gold which may serve it well in the future if gold heads up over US$800 an ounce. Maybe the financiers will like their story better because of a spread of the commodity risk.

As I said I do like GCR but one of my concerns is the perceived slowness of management. I am referring specifically to Adelong. This may not be fair on GCR as I don't know all the circumstances but this sale process has taken forever. The gold price is high and increasing so there must be interested parties. I don't know where the hold up lies but perception is everything and the market rightly or wrongly will see it as GCR's issue of not getting it moving along quicker.

Why is it an issue, because it is at the heart of how long it will take to get CH up an running.

Perception is everything.

I hope they can get it together as I would like to hold some for the long term.

But I believe that the very low share price reflects the issues I have raised above but particularly the link I am making to URL and the high risk in this high cost environment.

They need to get the finance, I would not like to see the share price if they don't and have to go back to the drawing board like URL.

Thus the increase in activity in the other prospects is critical as an insurance policy.

Flipper