Ann: Quarterly Activities Report, page-37

First glance I thought this is not as good as I’d hoped for especially looking at the cash balance, however reading a bit deeper they have done quite a lot just using operating cashflow.

Firstly the cash balance didn’t include the A$9.7m we received early Jan (outside the Q) yet had produced within the Q. There was also $2.9m of fine gold in carbon shipped to Ghana, produced during the Q that they won’t receive the cash till Feb-June. That brings the cash on hand closer to the expected $30m.

Having kept their free cash around $30m, they’ve done quite a lot out of operating revenue:

- 2 operational RC drill rigs operating continuously

- primary crusher dump pocket has been relined and minor civil and steelworks completed

- Internal walls to contain tailings have been built and repair and replacement of drainage is underway. (new tailings facility )

- Refurbishment of lab building completed

- In preparation for tailings deposition, some 250,000 tonnes of tailings and underlying soil and rock from the floor of the dam has been mined and trucked to Run of Mine (ROM) pad for future milling. The grade of this material is estimated to be 0.3-0.5 g/t gold. (although low grade, recovery will be > 90% so better than the present tailings at 0.5% with 50% recovery)

Other points of interest,

Koting is owned 100% by us, so Morila SA (20% govt owned) need to do a deal to use it’s ore.