Thanks so much for your highly informative response.It is good...

Thanks so much for your highly informative response.

It is good to know that, once again, I am spot on with my view and analysis. I am an idiot with regards to assessing the super pit idea, even if it was for the wrong reason.

What you have to say has left me a little depressed. I had failed to grasp the problems faced in creating a super pit. Hence, even approval soon will not make much difference in the short or medium term in assessing Kingsgate’s prospects. Moreover, even if it turned out to be a viable option, it would take a decade or so before it came to fruition. That does not mean it is necessarily of no value in taking a very long -term approach. Much longer than I would like, after having already waited for what feels like eternity, to see how important events unfold.

At least we have the prospect of around 5 years to mine, I assume, highly profitably A-pit. I do not know what gold yield to expect etc. but after making, what I hope are reasonable assumptions, its future net cashflow, discounted at market prevailing rates, from it may comfortably match its current market capitalisation. Back of envelope-type estimates.

I notice in your options list you do not include the likelihood that the geological systems found at Chatree are repeated elsewhere within its extensive mineral rights portfolio it now has. I am guessing this is probably because, if they do occur and are economic, it would take such a long time to evaluate and establish a new mine. There are more immediate pressing issues.

Your list highlights two seemingly easy options, that might proveviable and help extend the life of the mine way beyond 5 years while even longer-termprospects take shape. Explore and develop outside the fence. Presumably, withineconomic reach of the existing processing plants. Or (and?) expand pits insidethe fence. Do they not already know if that would be a feasible plan? Or, if they did not have access previously, have a reasonably good idea already?

Underground mining would be a challenge and is probably anoption best ignored for the time being. Based on the track record, NE and otherprojects are also best ignored.

You have not provided an assessment of the various options allowingfor different gold and silver price scenarios. Possibly like me, you wouldrather have more hard data at hand before embarking upon such an undertaking. Differentscenarios using a record gold price and a high silver price, measured inAustralian dollars, or even just good prices, can make a huge difference inassessing mining prospects.

If I am not mistaken, you now rate the share in the sentimentbox as a buy whereas some time ago it was hold. That is, indeed, a noticeablechange.

I think Kingsgate shares currently should be seen as a gambler’s delight. I continue to take a positive view on the share price. I am not a chartist but, hey, the price is holding up rather well at around the A$1.50 mark, a psychological round number, despite what looks to be some severe selling pressure.

I do not believe that things are so bad that the share price onlyhovers close to its CR price of some 15 months ago. I hope soon to see it morerealistically and positively rated. Some good news in the quarterly results may yet give it a much needed and deserved push higher. Not too long to wait and see. You just never know.