February Annoucement Stated the following points:1. Storm Water...

February Annoucement Stated the following points:
1. Storm Water Dam Remediation Works to be completed in March (contractor began last week, 3-4 weeks process)for certification, then trial re-irragation of heaps can begin.

2. AAditional personnel are in the process of being employed. These personnel will supplement people already on site.

3.All the pipe work on the heaps has been re-commissioned, pumps checked for reliability and general pre-start checks commenced on all aspects of the operation that will be required for the heap re-irrigation

4.Alycone plans to commence re-irrigation of the existing heaps during March 2011. This should then result in first revenue from this initial trial silver production being delivered in second Quarter 2011.

5.Work is already progressing on the Twin Hills mine construction programme. All long-lead items have been ordered and deposits paid.

6. Project Management work has been awarded to REGMPS, which is currently finalising quotations on the major components of the physical works, including civil, mechanical, electrical and instrumentation works.

7. Subject to weather, the Company intends to complete construction and commissioning at Twin Hills during the second Quarter of 2011, and ramp-up to full scale commercial silver extraction during the third Quarter at an initial annualised rate of 1.5-2.0Moz.

8.the operation would generate average annual silver production of 1.5-2.0Moz (with fluctuations from year to year typical of a heap leach project) and have forecast unit cash operating costs of approximately A$13.50/oz.

9.Alcyone with floor price protection at A$27/ounce for initial production during the start-up and commissioning phase of the Twin Hills operation while retaining significant exposure to the upside potential of a strong silver price now around $36.

10. Company has $16 million in Cash!