word has it, page-40

I have completed my contracted work with A1 and am now free to post non proprietary information. It is certainly good to see market confidence returning over past days. Not so good was the fact that I was unable to access the market while I held market sensitive information. The sell off that followed JW's resignation has provided some real bargains. Congratulations to all who saw the opportunity to "buy in gloom".

It is already public information that A1 is now accessing high grade supergene enriched ore. Disclosed drilling data shows this ore occurring in lenses and patches around the level of the water table. The old timers working the Mikado Mine went for this ore as well but poor ground conditions and limited knowledge meant they missed much of it. As has been disclosed, this ore is now being blended with harder and drier ore so that it runs smoothly through the plant.

I've kept away from recent production data because I want to be able to trade again. Without knowledge of actual production data, my prediction is that the small amounts of supergene enriched ore being blended may be maintaining recovered grade at or above 3g/t. Please note the word is "may" not "is". Such a grade is consistent with forecast production of 2500oz/month given that announced plant throughput has reached 1000tpd.

Of course, the market wants certainty and so actual production at these rates is what needs to be announced. A few months production at or near 2500oz will begin to provide that certainty. In the meantime we can expect some kind of risk premium.