I am simply a shareholder in MYG :) In order to protect the...

I am simply a shareholder in MYG

In order to protect the value of my interest in the company it is important to me that public opinions expressed about the management and general performance are accurate reflections, either good or bad. I’ve had a go at responding to your questions:

1) Why was the diamond drilling not complete as it looks like the budget has been spent? You might want to confirm first if the diamond drilling ever in scope for the drill campaign. The 5,088 metres of RC drilling mentioned in the June quarterly activities report is actually 588 metres more than the 4,500m announced in March (13% more drilling). It’s not recommended that you commence diamond drilling without first fully assessing the opportunities (i.e. assay the drill collars).

2) How are quotes from Ausdrill being benchmarked against the current market as stated by MYG? I don’t know is the honest answer. You have to back the competency of the commercial management team at MYG in this regard. I’d like to have full visibility of all commercial operations at all the companies in my portfolio but then so would other investors with different motivations (i.e. competitors, astute short sellers, those targeting a takeover etc.). It’s not how business works. I’d recommend you offer the company some pro bono professional services to help them in their benchmarking exercise.

3) Are MYG directors getting the lowest price exploration contractor that can competently perform the work? or are they too cosy with ASL as the contractor of choice and major shareholder? Probably not the lowest price, however ASL are likely to be under pressure to secure contracts in the current climate. Looking at value rather than cost is also a much better indicator. If I owned a lawnmower business (let’s call it AusMowing) and I invested $1.5million or ~ 9% in a land estate (due to a request from the estate owners to help raise some money for lawn maintenance) then I think it’s fair to expect that due to my willingness to support the estate, my lawn mowing services would be selected regardless if I was 10% higher than most competitors. I mean I would have pretty much funded a good 20 – 30% of the cost of my own lawn mowing services through the take up of the share offer right? I would also have a vested interest in making sure the land estate appreciated in value so I could sell my 9% stake for say…3 times its value and also retain a long term drilling…I mean lawn mowing…contract.

4) What value has the ASL deal yielded to shareholders? Difficult to answer beyond the anecdotal at this point. Personally, I much prefer working alongside a contractor that has an interest in making the project a success beyond just providing a once off service. Utilising a drill contractor that operates on a fixed price, ‘we assume all risk’ or an ‘at-cost’ model can be risky. Risks may include an inability to mobilise and demobilise easily during weather delays. Risk that their own financiers (e.g. a bank) calls in an overdraft. Risk that they are focused on more commercially attractive drill contracts. Give me a drill rig and I’ll do the job for free. Just don’t expect 5088m drilled, don’t expect me to come back after 3 weeks of bad weather, don’t expect me to come back if I get a better job offer. Backing a “penny exploration company” is already risky enough. I would much prefer to back a contractor that will get in, get the job done and help me figure out if I can extended either my life of mine or establish if I can increase my return on investment and appeal to serious capital investors.

5) Are ASL far to experienced an operator not to take advantage of a couple of broke, down on their luck penny exploration company Directors at the expense of shareholders? Being Ausdrill is the most successful drilling contractor in the world for the last 20 years that is. You don't get there by being an all round nice guy!!! We probably have different measures of assessing which drilling contractors are the most successful in the world over the last 20 years. Anyway, I much prefer having an experienced contractor on board. Regardless, one might argue a major contributor to ASL’s success are its strategic partnerships (e.g. AUMS) rather than a tactic of taking advantage of vulnerable clients. I’d posit both GR Engineering and ASL are very keen for MYG to enter into operations given the $2m+ investment they have made thus far.

Let's be clear, it is going to take a big effort to find an investor(s) willing to drop $70M on this project. I think it'll either be an LBMA member that eventually stumps up some funds (fingers crossed) or a sino led buyout. The gold is in the ground, the cash cost to get it out is extremely low, and profit is there to be made.

I will speculate and say potential investors are far more likely to be asking themselves - "Is it enough profit?"...rather than questioning if there is a profit.