Ann: Karouni Gold Project Update, page-86

xman, credit where credit's due, you've been on the money with your analysis of Troy for a few years now. Well done.

That said, I still find it difficult to be overly critical of Ken and the board. The reality is they just haven't been able to find sufficient ore quickly enough. And so they've run out.

But there's no doubting the effort that went into raising funds and then into exploration (and into keeping the mill running at the same time). But if the gold isn't there, it doesn't matter how hard you look. And I guess the geology of Karouni is such that it throws out some spectacular intersections from time to time but they don't always hang together into profitable resources.

Where to from here? I don't think there's a lot of clarity about what Troy is currently worth. The value appears to rest largely on whether Smarts Underground is viable. If it's not, then I'm guessing Troy isn't worth a lot.

If the Underground is viable, then Troy's value hinges on whether it can get the funds to develop it. My guess is the board will be able to access funding IF the Underground shapes up as being lucrative enough. After all, we're still in the midst of a gold bull market.

The wild card is corporate activity. If Smarts Underground starts taking shape, then someone might snap Troy up.

All up, Troy's as big a punt as it's ever been! I've lightened my holding a little but I'm hanging in there for the time being.