re: Ann: Definitive Feasibility Study Progres... GZ - Remember...

re: Ann: Definitive Feasibility Study Progres... GZ - Remember this is only being put forward as a lower capital cost and safer start up OPTION that perhaps could be fully debt funded. The BFS and Funding package may well still come up with the dual Kundip/Trilogy start-up being the preferred and more profitable choice.

In the proposal today the Leach Circuit could be deferred for up to five years. However, there could of course be circumstances that bring it on more quickly related to good cash flow/high metal prices etc. Note though the option is there for toll processing of gold which I think you might have been keen on. This would be dependant on continued high gold prices to cover transport and still have a good margin.

Trilogy was always going to be an easier option to get underway from a pit design and mining operation. One would think that this could get underway well before 2012 with pre-strip and ore recovery occuring while the plant was being constructed. We could well see production late next year.

Although feeling a bit disappointed that we won't have a Bankable Feasibility Study this month for the combined Kundip/Trilogy operation, I feel todays option has a lot of merit. This is particularly the case with so much ongoing discovery work to be occuring close to Trilogy can be in tandem and financed by the stage 1 production.

GZ you said

"As we have sufficient ore for at least 6 years of operation, we should not need to spend any more cash on exploration for the next couple of years, except maybe to bring Mt Desmond to JORC.....?"

No way - TTR must continue exploration vigorously as funds permit. With debt funding likely to pave the way to get Phillips River operational I expect there will be further equity capital raisings to fund exploration until this can be financed from positive cash flow post 2012. Building the resource with significant new discoveries will add capital value to our TTR shares far quicker than will the profitability of mining during the early years of production.

Interesting to see your Jabiru's forward sale of 60% of it's next 2 years silver production for $14,000,000 up front cash. I thought they were pretty cashed up....what are their plans for the cash? They say "The upcoming year will be one of growth for Jabiru with significant investment to bring the Bentley
Mine on line, construction of the Geraldton concentrate shed, continued feasibility and exploration
drill programmes at the Jaguar and Stockman Projects." Is that all they have in mind?

Given the relationship JML and TTR have and the proposal for "cooperative" sales with base metal concentrates I am looking forward to possible announcements of further developments of interaction between the two companies.