Ann: Maxwells CEB Progress , page-8

Angers,

You've correctly highlighted these important points. You picked out some of the meat of the report. One silly past poster suggested that IGR do not have the management or technical know how to pull off the projects, completely ignoring the facts that IGR brought Salt Creek mine in ahead of schedule and under budget, the same with the processing plant, and now Maxwells is ahead of schedule and UG is on schedule. Sounds pretty competent to me.

Other posters suggested IGR was high grading ore to keep up cash flow when in fact for the past six months they have been conservatively blending, "at around 2.7 g/t gold". Also posted was the problem of running out of ore. Maxwells will produce for two and half years so we will run out of ore? And Majestic will be a mine sometime in the year 2013.

All mines have an onsite laboratory so they will have crushed some of the CEB BIF and inspected it, and obviously believe it's worthwhile to continue the decline and "the cash burn". LOL

"Studies are underway to assess the underground production potential of the Majestic deposit once open pit production is completed." I wonder what they suspect is down there???

"As well as the anticipated open pit push-back at Salt Creek, there may be additional potential for underground extraction of a proportion of the remaining gold mineralisation extension further to the south."

CC talked about this possibility before. Stripping costs would be relatively low because they could push the overburden across the mined out Salt Creek pit to dump without trucking out of the pit. And from there we have the possibility of chasing high grade seams underground for more filthy lucre, again at a probably low cost.

And then we still have Lucky Bay and Fly Camp, Imperial shaping up as another good possibility, and Area B Aldiss another source of good hope.

Another $5,000,000 of debt was paid off the other week, (end of every quarter), and as per loan covenant, another $5,000,000 at the start of each quarter, is sitting in an OFF BOOK account for the next quarters payment. This quarter also sees a significant drop in the forward hedge so more spot price.

If/when the new filtering screen is completed, IGR should have little problem achieving the 100,000 oz production goal. They have already stated that the system is capable of producing a much higher throughput than the boiler plate specifications.

So, why does such an encouraging outlook produce such a tepid response. I'm baffled! I have yet to read a single post here that I find convincing. The supposed "Cash Burn with no money at end of the quarter? We'll find that answer in a couple of weeks with the quarterly.

Or, maybe the market is afraid Nolly will bring a lawsuit charging the company with outright criminal fraud as he seems to believe. However, looking at what the board members receive in directors fees, they are smack on the middle range compared to many, many other companies. CC's salary? From what I gather also very much inline with comparative MD's. In fact, he could probably jump ship and receive a significant pay boost. Which would probably suit Nolly just fine.

Anyway, I'll continue to sit here and wait for more good news. Not that it seems to do much good. High Frequency traders maybe? Fear of POG future? Nobody, and I mean Nobody, knows for sure.

And for a little extra, silver credits are fair bit higher at Majestic than at Salt Creek or Maxwells.