Ann: Potential Volcanogenic Massive Sulphide (VMS) Discovery, page-58

Hi Tretch, first of all let's be clear about one thing. EVERYTHING IS BASED ON IF IF and IF

You will well be aware that there are millions of exploratory companies around. A lucky few find a good hit and proceed to mine. A really great hit occurs once in a generation. A Norilsk like whale hit occurs once in a lifetime.

All great mining companies started off as small miners who got lucky. None of the great miners like RIO or VALE or BHP or NORNICKEL or CHALICE or FMG ever sold off their initial great discovery to make shareholder value. If they had done so, you would never be hearing these company names now.

1. Thomas says labour will be from Greenland and Iceland. That is good. I think another company was going to bring in Chinese labour.

2. Thomas says the limiting factor for exploratory drilling is from April to October because of daylight hours. Mining operations can occur 365 days a year. This does not sound like someone ready to sell off an exploration success.

3. Ryberg is 1% of licence area. IF they are successful, he talks of opening up a mining province. At 22.20, he talks that if we hit what we think is there at Ryberg we will put all our efforts to getting a maiden resource there and then targeting gold at Sortekap and prove up two discoveries this year and drill it out. So far so good.

4. Focus definitely on Ryberg magnetic sulphides with its Nickel and copper etc. Have $4M for this seasons exploration. IF we hit something magnificent, then will have nice problem of requirement for additional cash( a cap raising at a much higher price.)

5. At 24.32 With development side of things, who knows. We are an exploratory company. We are very good at doing exploration but do we want to go into development? I am not sure if that is why our investor base is there for. We are explorers, not miners and I think we should be aware of our skill sets and stick with that. I think us pretending to be a mining company is not the way forward. We make value by making discovery and then moving on to the next one and shareholders benefit from that.

I think that the Board members and the majority of shareholders will differ on this IF we find our monster. It is all well and good for Thomas to talk of flogging off the golden goose IF we find it but I cannot share his confidence of then finding a second goose in the leases. The money is in the development of the mine and the value created therein. If Thomas does not think he has the skill sets to proceed to mine development, then the Board should definIt tell him that he will need to upskill in a hurry. Failing this, they could possibly bring in someone who is skilled enough to take the whale discovery into a mine. The Peter Principle will come into play.

The Board and major shareholders are all presumably old. They will see (from FMG dividend policy) that successful mine development will provide their families and the loyal shareholders' families( and the generations to come after that ) with massive ongoing fortunes IF THEY STRIKE WHAT THEY ARE HOPING TO FIND. And I am sure Thomas, who is young, will eventually also see that same future.
Having a J/v or a t/o niw is like selling the golden goose for the price of a couple of beers now and forgoing the never ending benefits of the golden eggs in the future. I hope to buy a couple of houses in Dalkeith IF things pan out right.
IF IF IF IF IF IF IF IF IF IF