Ann: Excellent High Grade Gold Results - Cobar Gold Project, NSW, page-26

Hi guys,

I will clarify my thoughts a little further:

If you go back and look at the past 10-20 years, it is littered with companies with good prospects who were acquired by larger ones. Whether it was their strategy to do this or not I am not sure but clearly it means the companies' management did not have the means or did not get the opportunity to see if they could not move from explorer to producer. So I don't know if HLX want to be a producer or not, despite their positive progress to date. But I can tell you that in the past 20+ years they have only explored.

In regards to price, if there is a move I suspect it will not come now. Usually any takeover would come if the acquirer would reduce their own risk, that is when some type of reserve would be built up, and with the chance for further exploration success to increase production down the track. so predicting a price would be hard. If we assume that collerina/cobar develops to a point where reserves can be identified then I would expect the price to rise and only then would there be potential for an acquirer to reduce their risk. If this is the case I expect the stock could be 20 before anything happens, and that would only be a market cap of about 60m. so I am guessing that any offer would most likely be north of that.

Please appreciate that I am not saying that the current management could not operate and start a mine. The is the option to raise funds and get a loan etc...but as a betting man my feeling is that a takeover would be more likely.

As for selling other assets like the interests in South america...well this is probably likely as their attention does not appear to be focussed there anymore...what they would receive and when, I dont know...
Anyway, I am definitely a holder for a price somewhere in the 20cto50c range in the next 24 months.
Lets see how close we go.