Ann: PanAust to acquire majority interest in Frie, page-9

re: Ann: PanAust to acquire majority interest... PT,

Those issues are all true enough. However imho PNA has shown the kind of form in Laos that indicates to me that it will at least navigate most of those issues as well as anyone. The tailings risk probably bothers me most at this stage.

I guess there's also the option over the next two years of adding value to the project at modest expense and then selling it down, or selling out entirely if the risks do not appear sufficiently mitigated or manageable.

I don't believe that in today's environment a small miner can opt for an easy project AND get it at a reasonable price in competition with the Chinese, Indian and other Asian companies with motives of securing supply and/or hedging supply costs.

Laos is not without risk, albeit all may seem, on the surface at least, tranquil politically atm. And well let a couple of Rudds loose and even Australia can suddenly appear a very risky place to invest in mining.

I believe this deal sets PNA up to be lower risk, and a more sustainable company, but a third leg in say Chile would be even more comfortable. This is only a 55 kt pa step for PNA if the govt take their 30, and it should be from a base of near 80 kt pa (at 90%) from PK, plus the equivalent of another 20 of Cu equiv from BH. Ie this would only weight us initially to about 35% to PNG.

I suppose I still would prefer smaller steps for a bit longer, which is why I was quite happy when Chile went on the back burner.

Regardless of my sentiment, the market seems less than luke warm to the idea.

EL