Ann: Rio do Ouro (new name for Sertao) Drilling Update, page-34

Hi Tdman1,

The cost related with the production of gold in the last 2 quarters will be very high for sure, and the reasons will pretty much been associated with a totally inefficient and unproductive former management. Let's face it, what JG and RC earn a year together, is less then 60% what one our former directors used to earn, and who didn't give a rat about if we produce 100 oz or 5000 oz, which isn't the case now. The managers now have a remuneration system that is pretty much associated with the interest of the shareholders, not meeting the targets will not unlock their bonus.

But the company is not looking down and using excuses,it has been 9 months since the introduction of "Back to Basic" Company approach and they know that we can produce gold from Cascavel and unfortunately until now, problems have occur and prevent the move forward.. Mestre 5 can be a game changer, the grades are good (I believe they can be an article in the "Wall Street") and dilution can be minimised... So, we have 10 days left in the month of August and a update will be on the cards IMO. I have my fingers cross for a set of good numbers for August and hopefully we can find out what will be the best way to extract the gold, if the CIL method or current one.

There is the exploration side as well, and has been a drive towards finding what is out there in over 200 km of land, that we are entitled to explore. We have some good cards in our hands at the moment to push forward the exploration program, this is the historical data left by previous owners... With this sort of information we have been able to drill in areas of high chance of success, not just pick a point of drilling and hope for the best, this make this operation very much cost effective, always find something so far in the program, and also there is a desire to make sure that we let everyone know the true value of OGX.

Putting all together we are not out of the woods jet, there is more them the eyes can see in my view, and JG is working towards find the best way out. One thing is for sure, the proposal 70/30% JV is something that is not been considered by the Board. I'll not be surprised if others institutions having been talking to us and gather information, specially in the exploration side, and like Robert say in the previous post, there is a plan on the make at this moment, and the outcome is unknown, but with good chance of success.

This is only my opinion and always DYOR!

Bid.Rod