Ann: Noosa Mining Investor Conference, page-12

thinking same - Nic did not mix his words and thoughts but was clear with the message.

@Cashmeoutside - I don't think so. ALK will not be spending Mac's money but part of the positive cashflow they generate from Tomie. They forecast to generate around ~ $500m of free cashflow over the next 5 years which is lot more than their loan from Mac Bank. And I am 100% confident there is lot more room than $1m - $2m in the current budget.
Mac's loan will be paid back within a year (or two at max) and ALK will be left with extra cash ~ $500m over 5 year period. At current prices $1m - $2m extra spend means ALK will have to pay back that loan about 1 - 2 weeks later than they forecasted. They can even rollover the reminder of the loan if they want to.

It seems you fail to appreciate how much free cashflow is ALK generating right now and will be over the next few years and that $1m - $2m is less than a drop in the ocean. You also fail to appreciate the opportunity loss if ALK does not do what I propose to do and you also fail to appreciate the difference in the interest ALK will attract (from potential JV partners and investors in general) if they do or don't discover another orebody at bit higher grades.

If I proposed for ALK to spend around $15m extra in the next 12 months then that could have been bit marginal - still doable but on the risky side and you post would have almost qualified as spot on.

This reminds of the same arguments I have been hearing over the last 2-3 years that it is not worth following up on higher grade zones (but now it seems that was exactly what ALK should have done) and for ALK to have drilled 2-3 holes at regional projects/targets in order to qualify or disqualify some targets for follow up drilling - which is what ALK are doing now but 2 -3 years too late.