Ann: Kidman acquires remaining 20% interest in Burbanks and Gunga, page-8

Well not what I was wishing for, cash going backwards but we knew from the start it was a bit of a gamble.

Well I'm going to stick with them so focusing on the positives.

The cash bleed of $1.195 million included mine development and exploration of $908,000 which is a pretty minimal amount. Imagine the development costs if you were starting the Burbanks UG mine from scratch, let alone the Capex involved in building a plant. The development costs would run into many millions if not tens of millions. So if we are at a point now where we are accessing new production areas that's not so bad if it only cost us about $0.5 million. My gripe is more with the exploration side. Our $400,000 hasn't produced too many very inspiring intersections.

So sales for the quarter just covered production which included lower grade open pit ore which didn't perform to expectations. The open pit was always meant as a stop gap on the road to opening up the Burbanks UG mine so nothing to see here.

For those on other threads who are calling KDR a dog and are clearly directing those comments to me, you may still be premature with those conclusions. Remember this company doesn't have a plus $100 million market cap it is only valued at $10-15 million. With only 142 million shares on issue this market cap has plenty of room to grow (if and when the stars start to align) even if a modest capital raising is required, which now seems more likely as that quarterly cash balance is very low.

Remember Burbanks has a historic grade of 13.9g/t and hasn't been very deeply developed compared to other mines in the district. Cash can start flowing from this mine fast once suitable ore is accessed and resources can be expanded once suitable UG sites can be established for drilling. Saying they don't know how to mine is premature as well IMO.

Also this company is clearly ambitious with the acquisition of Mt Holland. What did it cost per resource ounce? Answer $3.5 million/928,000ounces = $3.77 per ounce and $1.5 million of that was in shares. Sure beats sinking your own hard earned cash into the ground. Mt Holland is a fantastic option that gives the company leverage to an increasing gold price.

If they can't learn to crawl before they can walk and can't learn to walk before they can run they better learn to run very fast. Was always going to be a gamble but it ain't over until the fat lady sings.

Eshmun