significant sulphides, page-18

I think we've all got it pretty well summed up.

Here's a few more questions to add to yours Serpie:

- Is there a basis for questioning the strength of the management? (eg plant running so late; and the Director in charge of the plant leaving his directorship; and the change in culture issues of moving from plant build to production, underground mining and alluvial mining).
- Is there a basis for questioning the strength and integrety of the Board? (eg on Director has a Chequered history, and I have seen an unsubstantiated post on another site that he was gone - information source "locals". I'd bet they had a few scraps before getting things moving - every start-up company does).
- Is there a basis for questioning the company's communications policy - seem to be snippets of detail all over the place - how much better do other companies do?
- I still think (as others have said) this is basically a $ 0.50 to $ 1.00 share - is the current risk discount on the s.p. appropriate? with a prospective PE under 3.

I guess all questions are normal for an early stage company - being in production 15 months after float is pretty damn good in anyone's book, and it seems, they are running a tight ship in terms of costs - which as a quid pro quo as non-core stuff suffers.

They are clearly also now producing free gold, so there must be some kind of production or sales figure sooner rather than later.

It seems almost certain that they are recovering levels of gold and conc. from tailings that others are not. If this is correct the potential value is huge.

They must have a pretty good idea how to recover most of the gold from the sulphide concentrates - otherwise last week's announcement would be irrelevant and misleading. They are looking to do it in-house. Alternatively, I know there is a market for selling gold bearing sulphide concentrates as is, but it's only at around 40% (I think) of the gold value.

IN the recent announcement, the MD wouldn't say "too early to review Resources and financial forecasts" unless they saw a need to review these (upwards), but they just haven't done it. It's code for - "we will be reviewing Resources and profits" - and you'd only say that if they were going to get better.

But - everything is slow slow slow - they are probably short staffed too - as good pre-production companies with such a low market cap always are.

So I feel increasingly good about this.

Unfortunately I got over excited and over-committed to this one months ago (expecting faster progress), and so I am having to dribble a few 00,000 shares recently at the 17 - 18 cents mark - a sure sign the price will rise the day after.