Ann: Four Mile Project - PEPR Status , page-138

Hi Damo.

I guess you can put it down as another one of those Four Mile mysteries.

There are countless unanswered questions. Fortunately, as I see it, the mysteries surrounding Four Mile and Heathgate Resources point to an inevitable positive re-rating for AGS if AGS remains a stakeholder in Four Mile.

The World Nuclear Association has been publishing Beverley production figures that have been showing a steady decline at "Beverley" since 2009. From what I can gather (now) these figures may not have included Pannikan or Peegegoona.

Heathgate's presentation last week shows an increase in production from "Heathgate" and it looks like it is including the Beverley North deposits. Here is last weeks numbers (2010 onwards):

2010-11 ~750,000 lbs
2011-12 ~900,000 lbs
2012-13 ~1,000,000 lbs

Now if current total Heathgate annual production is around 1Mlbs and Heathgate's Beverley North production is increasing at a greater rate than the rate of decline at Beverley then how is Four Mile going to come into production at an annualised rate of 2.55Mlbs and the Beverley Plant is going to accommodate?

Doesn't look possible unless there is going to be an increased capacity to process.

So we have lots of questions. All for the good though as I see it.

Beverley North deposits look like they are performing well. Considering Pepegoona West and Pannikan are sitting on our tenement boundary it is looking very good for AGS.

Lots of recoverable pounds in the ground at Four Mile.

I think I remember Heathgate estimating there is 9 Mlbs at Beverley North on their side of the boundary. How much is sitting on our side?

How is Heathgate going to accommodate current upward production (at Beverley North) and the addition of Four Mile production that will easily exceed 3 Mlbs (grand total) per annum?

Just a few questions that remain unanswered.

Four Mile South. Just another one of those unaswered questions.