Probably the best turnaround play out there at the moment.At...

Probably the best turnaround play out there at the moment.

At these levels new shareholders are taking advantage of the sunk costs incurred by previous shareholders. Operationally things have stabilized, the push to not only get the plant to nameplate, but tap into greater efficiencies to cut costs. Then there is the upside of converting known resources to reserves, which given their relatively high grade is very probable, not to mention the large twin fault tenement holding.

I think after Missouri the company may underground mine Riverina and blend with existing stockpiles to negate any viscosity issues. A decent blend may see a feed grade of 3-4g/t into the mill, given stockpiles are about 1g/t and Riverina underground is mid 6 g/t.

Drill programs targeting extensions to highermargin deposits includingunderground targets•R/C and diamond drilling has commenced at Riverina in July; extending andinfill drilling our higher grade underground Resource

Current total resource of ~300koz at 2.6g/t;this includes~150koz at 6.6g/t from underground*•Drill rig currently onsite for infill and extensional drilling ofthe higher grade underground resource•Can bring online as underground rapidly; will increase gradeto mill and increase production profile and cashflow•Mineralisation tracked for more than 3km of strikethis isuntested down plunge or at depth

Access to the underground section of Riverina is pretty much already there. From a cash management position it could make more sense than stripping Sand King.



For the time being the company is constrained by 1.2mtpa plant size. I believe they will have a go at bringing on the higher grade underground mines in the medium term (after Missouri and possibly small cutback at Sand King), generate significant free cash flow whilst proving up the size of the open pits, then in the longer term, when there is a proven track record, look to expand the plant size to 2-3mtpa and attack the open pits, which ideally by then they have added size to.