Ann: CPs to Mount Gunson Excised Area Farm In Agr, page-4

re: Ann: CPs to Mount Gunson Excised Area Far... Been busy today. Just read the report, a good read.

Negative: it's a commissioned report.

Positives: 1. 14 c undiluted valuation on Mt Gunson MG14/Windabout project at mining stage.
2. Some interesting macro level commentary on the mineral sands market having bottomed out. Peppie, you might find that section interesting.

ASX Gun, note that the valuation on the copper assets assumes that it is at mining stage. That would be a good 12-18 months away. There's no way they could sell it for anything like 8-10 cents per share at this stage.

Therefore it would probably be foolish to sell it at this point. In fact I would say it's definitely unwise to do so given Terrace are going to spend $2.5 million proving it up. Personally I'm confident they will do it - the proposed method is already widely used in gold and apparently appropriate for the chemistry of our ore. So let's allow Terrace to put value into it for us.

In the meantime there will indeed be a capital raising and this is the point where the Mt Gunson assets can be 'sold' ie used to attract some speculative support.

Hopefully Bill Bloking can get a good broker on the case. I think if they can raise enough capital to run the company for 12-18 months then we will be right as the fundamentals of both the projects are turning in our favour.