Ann: Resource Upgrade - Mt Boppy Gold Project, page-13

This is definitely an issue for me in this latest update. The gold mine is running at a loss. The production costs and labour costs are obviously higher than they anticipated.

The prospectus plan was definitely to utilise gold production to pay down debt before transitioning to silver production with potential exploration upside as a kicker.

In this quarterly report, they had a sentence or two about the last quarter's mining area being lower grade and a heap of waste material being removed as part of mine plan, which would explain high production costs for the quarter. I am sort of willing to give them another quarter to see what happens now they have upgraded remaining resource to 4g/t but if they dont have a decent amount of free cashflow and pay down more than $1 million on that outrageously expensive loan, I will be taking profits and keeping an eye on them from the sideline.