Will put this one up for general discussion as it has just been...

Will put this one up for general discussion as it has just been mentioned by Gerry ,

I too did some research on this one as well as VRE but being cautious of the Chinese and the way they do business I passed .

______________________________________________
30 January 2004
QUARTERLY REPORT TO 31 DECEMBER 2003
MAIN DEVELOPMENTS
The Company made excellent progress towards becoming a significant Chinese gold
producer during the quarter. This includes the formalisation of a number of SFJV’s
(Sino Foreign Joint Ventures) and Contracts. Excellent progress was made towards
completing the BioGold acquisition during the coming quarters, which is expected to
deliver consolidated production well over 200,000 ozs pa, along with a significant
revenue stream and growing profits.
• SFJV registration completed for Guangxi Exploration JV, (90% interest), a
substantial improvement on the previously announced 60%.
• Approval for Mining Licence for the Jinya Gold Project (60% interest) received.
This is the final administrative step prior to registration of the SFJV, which is
nearing completion.
• Michelago to purchase 82% of BioGold Gold Processing Facility (300,000ozs pa
combined capacity), a substantial increase from the previously announced 51%.
• Bactech agrees to fund increased BioGold stake (via a placement of Michelago
shares), the increased stake thereby has zero net cash requirement upon the
company’s existing cash reserves.
• BioGold SFJV secures exclusive Bactech technology rights in China, Mongolia,
Siberia and Korea via a Memorandum of Understanding with Bactech Mining of
Canada.
• Xinjiang WFOE (Wholly Foreign Owned Enterprise) contract signed, superseding
previous Letter of Intent.
• Drilling exploration programme on the Jinya Gold Project to commence in
February 2004.
• Michelago raises A$7M for working capital during the quarter. The Company
currently has approximately A$7.6M at