Ann: MD AGM Presentation , page-7

Hi Gonesolow

I was at the meeting and got another genuine HEG nugget for my trouble :-)) I now have TWO sitting here next to my screen and I received my new cap yesterday - so I am Fully-HEG at the moment!

Here is MY interpretation of the AGM - please take it as an interpretation only!! I know that Opaline will give his views as well - so together, you will get a pretty good picture.
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PB gave his usual "professional laced with dry humour" presentation, mainly going over all the information that us regulars already know.

The only exciting "new" development is that the computerized model of the ore body is now starting to show (prove?) that the body is made up of some small pockets of very rich ore(e.g. 500g/ton) - BUT inbetween these pockets are lower concentrations of gold spread throughout the entire ore body ZONE....

As I understood things, they might be looking at the possibility of bulk mining the entire "canyon" which is about 5 meters wide 300 meters deep and 500-1000 meters long.(See page 21)

PB also mentioned a "parallel ore body" adjacent to the old workings which I am sure we will be hearing a lot more of in the near future.
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When asked the question why the production was so low, PB confirmed that the mine was still in the Development Stage - once all this was in place, production would dramatically increase (see the revised graph on page 36).

Greater plant capacity (either with an upgrade or new plant or both) would be in place by Jun/Jul next year.

When questions were asked about exactly WHEN everything would happen, no specific dates were given. What was said, was that HEG does not envisage any more capital raising and that they expect profits from Reward to finance the bigger Hargraves project.

PB even hinted that there might be a dividend in 2 years time once Hargraves came on stream - which was music to my ears :-)

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I also had the pleasure of meeting Bryan and his charming wife Trish - really down-to-earth folk who are obviously very excited and positive about the whole HEG story.

After the meeting, Mike (Geologist) kindly took the time(and patience!) to explain to us the make-up of the ore body - which I am sure Opaline will expand on.

To summarise, I got the impression that there is a lot of gold at Hill End - even though it can be a bit difficult to find at times.

HEG has sufficient capital and is on the verge of ramping up production & moving into the big time. By this time next year we will all know one way or the other if we should wear our new HEG caps with pride or put them on the shelf with our gold nuggets.