Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-6

You're correct I don't own the stock however a quick look through any of the previous quarterlies will show my interest in the stock and the reasons for it, and it largely stems from previous operators completely blowing the opportunity with Wonawinta and Boppy.

I hinted on a post last week that I had heard things were bad at site, but never thought the production numbers would be so low like this. There is a lot to be concerned about...

1 - They have the audacity to say '0.1-0.15g/t Au, which border on assay detection limits'. This is such a flat out lie. ALS or Intertek both advertise easily obtaining 0.005g/t grades for Au on their websites, so why make it sound more difficult than it is? They also have a lab at site that can measure down to 0.001g/t in solution (or it did when I last visited the site), so why can't they obtain these results still?




2 - The weather. I thought they were past blaming the weather for poor production data. When they were hauling from Boppy 150km away, and 30km by dirt road, that argument held some weight, but since they have spent the last 9 months just moving material from the ROM to the feed bin (maybe 100m?), they still blame weather for "ongoing challenges for the plant". Yes October was wet at Cobar, but December had the average rainfall for the month, and nearby rain gauges reported normal rainfall for November also. So I cannot see any reasonable excuse as to why this is still being reported.

While I'm at it, you have to add water to the ore to get it to classify through the cyclones, so arguing that the fines 'clog when wet' could only apply to the ROM bin. Setup a couple of sprays fellas, its not that hard!
which leads me to...

3 - Tonnage. The throughput always was low, even with boppy ore. The production numbers suggested they were processing around 30-40tph through the mill, when it historically did much higher tonnage (55-60tph). No reason was ever given for this in an announcement and still remains unresolved. If I had to make a educated guess, they couldn't haul fast enough from Boppy due to lack of trucks or some other issue.

They say they reckon they can get another 200-250kt/year through the plant. Last quarter they processed 55kt!!!! How are they even going to make nameplate tonnage at 850kt/year?! The whole claim about their capacity just rings hollow now. They've had the best part of 3 years to get throughput sorted and its not happening!!!

They mention the deslime circuit "has a smaller capacity than the mail mill" and also "until the larger mill is restarted". So they have turned the big mill off??? The reason for this isn't addressed in the announcement; the company should be honest about why they can't run it.

4- Debt. Blown back out to A$15M overall. the last 2 quarterlies have relied on pumping more money into the joint otherwise they would have gone broke. This is worse than when BOK owned the place (save for perhaps BOK owed more to Trailstone).

How the hell everyone has kept their jobs through this, I'll never understand.

Time for your shareholders to kick up a stink and raise an extra-ordinary meeting and start kicking proverbial backside.