Ann: Sconi Project in Due Diligence Phase for NAIF funding, page-270

O.K so that's a fully loaded up post there you have @mikesz. I'm a little reluctant to respond quite frankly. Simply for the fact that discussions just seem to go round and round on this forum and one doesn't necessarily want to open themselves up to the ' cross examination ' that seems to be driven on these forums from pure testosterone alone. One also has to keep their own cards close to their chest in terms of what their individual strategies may be.

So I'll kick off my response by saying that I reckon the Fat Lady - which in itself in not exactly PC.....while nowhere near singing as you say - is at least clearing her throat at the moment. And she's been a bit crook as of late , however that is all to be expected when we are clearly in Flu season and the tour has just begun....

In respect to some of your direct questions - and more specifically in regards the BFS which includes the recent announcement eluding to the involvement of the QLD branch of the Government. This is obviously a positive indicator of what's happening behind the scene's. A sneak peak if you like into the fat lady's performance . In reality this could in actual fact be a prelude or even a prerequisite from not only the lending consortium or lead Financier but even SKI itself. Surely we must all agree that we haven't heard much from SKI at all since the inception of the proposed deal. It may be that given this deal was inked at the top of the market , that they have suggested they would like a little more added into the pot.

It could also be a indicator and / or a step towards further Federal Level Funding which may be available. Those of your who have been investing for a while would remember the role the DPIE had in regards the early years of the NWS project in W.A . For those who weren't doing this thing we call ' share trading ' back then , the NWS project was the largest project ever undertaken in Australia which at the time had the potential to provide significant opportunities for sustainable growth in Australian industry, particularly in terms of project management, design, fabrication, manufacture and installation . This project was so large that it was subject to approval processes and legal requirements from all three levels of government.

So from this era we know that major projects can provide vital opportunities to Australian suppliers of components and materials and of design and finance services. In addition and if full advantage is taken of these opportunities , Australian industry can become internationally competitive. It is a well known fact that long term economic benefits will flow to Australia through the development of a skills base, technology transfer and sustainable growth associated with this new Industry. As in the NWS case which of course is quite a different animal, local content was also an integral part of the discussions if not in finalizing the ultimate agreement when various layers of Government are involved.

So at the very least , we should all expect that this sort of ' Mega ' project if involving several layers of Government will be quite involved - and not so much complicated but instead I would say more complex. These complexities will take time to ' iron out ' with all parties to the transaction. As I mentioned and with respect to the lenders - it might actually be a prerequisite and recommendation that AUZ involves the Government in some capacity. If not for surety - as they definitely won't be ' Indemnifying ' or indeed ' underwriting or guaranteeing ' the project ......but in simply providing a level of comfort to the lenders that they are at least vested or ' involved '.

This is why I said that for no mistake on AUZ's behalf. This has got that big that the original terms of even the sale contract with MLM will have to be dealt with in respect the caveat and / or ' Mortgage ' over the SCONI tenements.

O.k so enough about that - we could literally talk about these points all day. ( and I know you all will..... ) . So with respect to Bergen. This is rather benign to me. The finance was clearly a ' stop Gap ' measure most likely to cover the 3.4 million which has to be paid for taking up full ownership of Flemington from Jervois Mining. So who cares if Bergen makes a quid from shorting or whatever it wants to with respect to this predictable volatility. I'm doing it so why shouldn't they. At least until the pendulum swings back the other way.

You had no question 3 @mikesz - Thank God..... So in respect to your 4th ....which is the biggest one for me. Needless to say and I know there are several Accountants on these forums. Regardless of this though , I'm pretty sure I can hold my own here . So one of the points I have already raised is the possibility that we may in fact have to re-value this project significantly as a result of the present balance sheet. In addition , one also has to take into considerations the distinctions between ' Capital ' and ' Revenue ' in regards to expenditures undertaken to date. Now I don't want to bore you all with Tax Rulings and ATO determinations . Suffice to say that in regards to EFS's or DFS ...or indeed BFS there is no presumption that exploration expenditure is capital or capital in nature , just as there is no presumption that exploration expenditure is of a revenue nature. In the end you must have regard as to the nature and character of the expenditure in light of all the facts and circumstances. Again I could discuss the implications of depreciable assets for tax purposes here with you literally all day long . However my point here is that given all these potential financial parties to this transaction is that these features like Tax and Asset Valuation are indeed important to the final BFS ....and as such will take additional time to work out for the betterment of ALL the parties involved or getting set to be involved.

These are the intricacy's I am working through at the moment - which includes my examination of the forthcoming Quarterlies. And for those who continue to flog the Engineering as the most complicated issues etc.... etc... Try working through the Tax , Legal and Accounting side of ' Multi Partied ' , ' MEGA' projects. Thing about Engineering is it is pretty straight to the point ' right ' or ' wrong ' . With the former there is much more ' Grey ' areas which need to be sorted on the business end of things.

Your 5th point is really a given with respect to Shareholders expectations of the BOD etc. At times they have looked to have some inexperience with public announcements and leaks etc. However , I believe they are improving in this regard and will certainly have to when all the players come together for Her ' Encore ' performance. Hopefully she can clear all the Phlegm out of her throat before then.

Bottom line here folks - it doesn't really matter a whole lot about the ' schematics ' or the % output or 'throughput '. We know these will be sorted out by the Tech's. These are not the factors driving the SP at the current moment. Without giving to much away , I would be more concerned about the return we have got in the last 12 months as calculated by a return on exploration dollars per pound of increased JORC reserves of Co and Sc .... as well as Ni. And it is all about the uncertainty's in markets - and that is a big one hanging over the stock at the moment - Plus all the other peripheral matters I've mentioned which seem to be compounding on the negative sentiments.

I wouldn't be human if I didn't wish everyone the same luck as I expect for myself - so All the Best to you All........