Ann: Option to Acquire 560,000oz Peak Hill Gold P, page-31

re: Ann: Option to Acquire 560,000oz Peak Hil... Bought this like many of you for a potential vms and well under water. Did not buy for a gold play so can anyone enlighten me on Grosvenor. Forgive me as many of you will know the following. With too much time on my hands today I looked back at the history of Fortnum under PEM. According to company releases PEM produced 540,000 oz for an operating surplus of $70m before closing down /selling. Then I listened to an upbeat interview with Ian Prentice of Gleneagle in June 2006 just before the July re open. Then Gleneagle closed Fortnum in April 2007 and went into recievership.
The mine was sold to Eagle Mines in December 2007 who then went into recievership in 2009 before a renaming to Grosvenor.

Chatting with an old geo with a long memory (which I hope is wrong !) he told me that he recalls a lot of problems with releasing the gold from the ore which he believes the reason for earlier owners problems. Costs buried them.He also doubts technology has since solved those treatment issues. However, he believes if the plant is used for other less tricky ore they may have some hope of reaching target production.

Looking at the share register, who supported the raising at $1, then RNI's statements at that time, they clearly also were on the vms trail.

If we'd wanted a gold play there were far better alternatives.