2011, page-34

Hi Moorpett,

I no longer hold and got out after the last drill results last year.

Why? That changed things.

1)Because the last two drill campaign results were poor and getting worse, meaning that if they did mine the 6g/tonne grade would now be serevely down graded/blended until ~3-4g/tonne.It will take a big effort to get to a mine stage.

2)Management were supposed to do drill RC in Feb. but then they mentioned that this would occur early in the year and my take on this was March April. Pushing back any JORC upgrade to late in the year.

3)I started to get the feeling that management were in no particular rush, as they still get paid to keep their lavish lifestyles? So the longer things take the better for them. Because lets face it they could be drilling aggressively with several rigs on several sites to get results. It would be drilled anyhow, sure they have to do there research aeromag etc.

4) Another concern was the number of shares and the fact that the top 20 only hold 17% with ~3400 individual shareholders, no major holder to drive the stock.Geocrystal and BCN are more interested in owning a greater stake in CSD ~12-14% than BCN.

5) D effectively used BCN money to buy into CSD (obviously a good move) but gave him a paying position on the board? So I don't think there will be a exit for BCN from CSD even if BCN did need the coin, as it would affect the position.

6)Plus I thought there would be downward pressure on the SP as the results came in and delays kicked in!

They might get lucky with the upcomming results from CSD but I doubt that, as the last results weren't that good and a bit sparse and too many different processes to extract the tin from different locations.

Time spent in the market going sideways costs you money, then investors start bailing to even invest in an index. It was worth the punt at the time as they may have got better results, They could of done regional exploration work later and drilled more around Halleys. Who knows it was a punt.