placement, page-19

chatzy I couldnt watch a good profit go buy! The hard nosed sharetrader within just screamed sell when I saw that latest placement and the sudden rup up over the last few days.

I reinvested in BDG. Now HEG and BDG have similar market caps, but BDG has $50million bucks in the bank and $300million on infrastructure spent by other poor investors which you get for free


HEG on the other hand has a big CAPEX requirement over the next few years if it wants to get into the same potential tonnage BDG can do. The boys are ambitious and the current operation is not delivering the cash flow. In addition as the tonnage has increased the grade has declined badly.

Now before anyone starts shouting, the biggest issue in narrow reef mining using airleg is development costs and dilution. I am not intersted in excuses for the drop in grade, unless the grade goes back upto 20gpt they are not making money

The other issue is how to get upto their target of 40,000 ounce pa. SLR does it using a decline and 6 airleg teams, and its need exceptional management and a fantatstic "easy develop" ore body to achieve the good results they are achieving.

The forward CAPEX requirements are a worry. Their ambition is to develop Hargraves. That is going to need a lot of cash, probably $80million IF it scopes out.

Thats a lot more paper to be issued.

Its nice to dream of bonanza lodes, the reality is the lodes are just occasional cream. The cake itself has yet to be proven to make good money.