Most people haven't disputed Dale's ability to run a mine....

Most people haven't disputed Dale's ability to run a mine. That's what makes for a good manager, but not necessarily a good Director. Now we have a company with $25 million revenue that on the Corporate side isn't good for $2.5 mil of revolving credit or the like. One wonders how our Board is viewed by financiers. So we've been suspended since June. That's not good. Personally I'm for transparency which is similar to honesty. If the Company had reported mid-quarter that operations were continuing, albeit a little behind, but that costs were being managed so that they matched, then shareholders would be informed and would be more likely to invest/maintain investments because of the respect they were shown. Also the market cap is only $9 million which is ridiculously low...my opinion is there could hardly be much of a decline in S.P.because the assets and resource underpin a higher price. So it's my opinion the Board has erred. It certainly has in not ensuring the $2.5 mil is covered, and most of the complaints are aimed at Board level, not operations.

Now we have about $1 mil in reserves (gold and cash). Next quarter estimated expenditure of $7.5 million ie $550,000/week. So we walk a thin line of 2 weeks up our sleeves with no line of credit...that's not good either. That said, if we mine 4,000 t/week averaging 4.5g/t (assuming 50:50 Union Hill @3.5g/t and A1 at say 5.5g/t, a split that I couldn't see if it was reported.) then we get 18,000 grams or 580 oz per week. At $1700/oz this equals near enough to $1 million. Deducting the $550,000/week leaves $450,000 a week net. If this is the reality, and all figures are taken from the report we've been supplied, allowing for say 5 weeks production for July through to 3rd August, and spending as reported means we should have netted $2.25 million. Add 250,000 from the cash reserves and we may just be able to pay off the debt ourselves. The thin line of two weeks credit becomes even thinner, but if the Company is performing as stated, in another weeks time we could conceivably have replenished reserves to current levels, if not higher.

Now instead of spending every penny before it is earned, surely the object of the exercise must be to guard against the same thing happening again. Build a higher level of reserves, and at the same time negotiate some form of credit from a position of relative strength. Ensure transparency, inform shareholders, report and give guidance towards the future, govern with integrity. In other words perform the functions at a level, a Board worthy of it's remuneration, should be reasonably expected to perform to. The precarious position of the company necessitates more thoughtfulness towards shareholders than this Board delivers. It isn't difficult.