Ann: Gold Production from Second Fortune, page-32

At the moment AWV market cap is equal to the supposed free cash from Second Fortune..I.E. $20m

That means the million oz of gold at Big Springs is thrown in for free along with any other tenements held in WA.

People say the market always gets it right.....?

IMHO I see it as this;

The plan was to merge with Exterra (as an alternative to cap raise) to get a hold of the AUD$20m to fund the development of Big Springs (USD$15).

The Big Springs costs are USD$2m to get the roads and dams built and another USD$3m to get the 1.6m tonnes strip waste off the open cut. The rest of the money would be needed for costs to start the mining proper and subsidize the open cut low yield ore till they get into the good stuff deeper down. Thats the best option with the best paying outcome (plan A)

The SF ore sorter didnt work as planned because of the fines and the yield didnt match Exterras assumptions. So Plan A is hinging on the hope they can get the yield up at Second Fortune in time to create a cash flow sufficient to look after the $3m loan or at least look good enough to re-finance it. If not then expect a cap raise.

If all the above doesnt work out I would expect plan B is they will do a deal with Sprott whereby Sprott funds the development of BS on a gold share basis while they try to get some positive pay gold in WA.

Whichever way they go it will not be as per announced expectations and I would hope we will get some clarity shortly.