Ann: Half Year Accounts, page-12

KAU would be ill advised to fall into the trap of monthly production updates, in what is shaping for a potentially exciting June quarter.

the mostly upbeat Feb. 13 production update served its purpose in steadying the collapse in the SP early this year and there was enough information to support the optimism, not the least being a week's mining at an estimated 13 gpt, more than doubling from the December quarter recovered grade.

of course i want more information about operations but the history of KAU production at A1 has been lumpy. Issuing monthly reports could increase SP volatility and actually be counterproductive.

despite spot gold touching A$3,300 recently, gold equities trading is distinctly lackluster. In such a market good news can be easily overlooked while bad news can weigh heavily.

moreover, KAU has the option of issuing a preliminary production report for the March quarter a few days into April with a full report by April 30.

i'm upbeat on our prospects and see the March quarter as a trend change. Time will tell.

KAU has other irons in the fire.which could ignite the SP.

the drill bit was already turning when KAU issued a statement on Jan. 22 announcing the start of a 4,250 meters diamond drilling exploration program at Nuggety.

with nigh on two months work at the site, it's possible KAU could issue some good news in days or weeks.

News of a joint venture for the two exploration blocks in the Macquarie Arc could also drop any day. KAU said it was in talks in a report issued Jan. 23.

of possible significance was news this week of FMG's A$14 million JV with MAG in the same general area. MAG was a lot further along the exploration path than is KAU but it's elephant country and many majors would be interested.

since when did we downgrade nearology to near zero.