problems with igr, page-2

Over a year ago many long term investors had assumed that IGR was significantly derisked due to open pit results being achieved then.
The 31-01-11 Dec Qtr ann said the IGR had $12.995 mil in the bank.

On the 21-02-11 the company unexpectantly ann a $40 mil cap raise
($20 mil to repay debt, $10 mil process facility upgrade, $5 mil drill program
& $5 mi working capital)

The discount of the cap raise in 02-11 saw the SP drop and experiencing problems recovering for the rest of the year.

The market then expected IGR was all set to make serious money for the remainder of 2011 due to higher POG and beefed -up plant.

But on the 31-01-12 the 6 month to Dec report announced:
-$20.5 mil cash (down from $37.75 mil at 30-06-11)
-Plant problems in Dec 2011 running into Jan 2012
-reduceing ore grades
-UG mining not available until second half ofthe year.

This sent alarm bells ringing and saw the SP drop from 61c to where it is now.

Now the future of IGR seems to be significantly dependant on the success of the
UG operation supplementing the lower grade open pit and stockpile plant feed.

I agree that the economics of proceeding with UG before JORC drilling may
be prudent but it has risks and these risks are evidenced by the recent
drop in the SP.

In goldmining grade is everything and only time will tell if IGR has everything.

With best regards
Moorookamick