Limitlesstrader ... drilling will not only happen in Peru but...

Limitlesstrader ... drilling will not only happen in Peru but also here in Australia, most likely this year. The company will update on Peru drilling in the near term and whilst the first hole was very slow, because of the broken ground, I doubt whether all holes will be equally slow. In terms of the argument that the company has plenty of cash so why raise more, there are a couple of points to make.

First, exploration companies with no cash flow from existing operations have to continually raise funds to keep the doors open and to explore (which is the one thing can can change everything, if successful, and see not only a re-rate of the share price but possibly future cash flow from mining operations).

Second, and this is particularly relevant in the current situation where shareholders might argue that there is plenty of cash so why raise additional funds when the opportunity presented it self at the end of July when the ICGOB options were being exercised? The issue is the cost of drilling. At around $250/m you don't get much change when you drop in a few holes at around 1000m each!!

If you recall past ASX releases on the outstanding priority 1 targets at the Frewenas, we have a recommended drill program, from the independent consultants who processed the AMAGRAD geophysics data, of a minimum of 10 holes around an average of 1000m each, and that is just to initially test each of the targets. So, just the initial testing of the targets is going to cost at least $2.5 million. If any of those holes hit something of interest, then you would clearly want to drill a few more deep holes into the said target(s) and you can easily see an expanded drill program quickly eating into what everyone thinks is a big Treasury. My view is that it always best to plan and budget for the worst case and hope for the best. Any successful drilling will also most certainly have a positive impact on share price, which I can safely say is the one thing that we all want.