Ann: Update on Hammer Mill 3 Commissioning, page-107

Well today has been just fantastic in terms of commentary.

We have a multi-millionaire wanting sympathy because he didn't buy another house and we have old mate with verbal diarrhoea dishing out his endless and totally conflicting and often diametrically opposing advice.

What fun.

Someone call the Waaaambulance!

Meanwhile we have to make sense of it all:

The only concern I have is that they are able to mine enough underground material.  They don't appear to have made as much headway with underground mining as I would have hoped, with 1,000t stockpiled underground and 4,000t at surface.

The commissioning problems the mill has run into are not an ongoing issue as far as I can see -certainly don't concern me as they clearly appear to be on top of it.

Probably what is not begin considered are the logistical issues being created by the backlog and stockpiling of ore.

I can't see where they have reported gold production for April so far (like the first two weeks) -I think this is deliberate to provide a trading benefit to those who are either closer to the action or study the situation more carefully.   Those who buy a few shares in between buying apartment housing complexes (for example) probably don't consider these concepts.   

However overall ...the gold is there and the hammer-mill is working AFAICT.  Isn't that the most important info what we wanted to hear?

On other positive news regarding Cascavel/Cuca:

• The second bogger due to hit town increasing production
• Production for this month must be progressing successfully
• Big Bertha HM4 next month
• Full production in May
• Currently in a seam at Mestre of 2.5m thickness
• Cuca becoming more serious with bulk sampling and underground drilling to commence to help with resource estimation.  This is clearly in advance of pulling the trigger on a decision to develop access to the mine.

On other positive news regarding the other tenements:

• Antena results due shortly ...my guess is they have seen the drill core and understand the mineralisation / geology ...or they wouldn't mention it.
• If this is positive, it will further prove the mineralisation / geology concept as represented by the geophysical surveys, which suggested a wide area of potential mineralisation suitable for open-cut mining.
• Sertao drilling to commence with a view to an operation with Antena.  Perhaps another processing plant situated at Sertao using its existing licenses and infrastructure.  Road infrastructure already built between Antena and Sertao mining regions.  Ore type and milling already well understood from previous Troy (TRY) successful mining experience.
• Elisio results expected "shortly" ...this is a potential open put bulk-tonnes resource ...and as it's 25 klm north of Cascavel, perhaps it might be a good candidate to start any possible JV with Anglo (but on more favourable terms for OGX).
• Tintero Cobalt rock chip gets another mention.  Who knows, could be nothing -or perhaps not.

I hold for better news expected in the near future.

Cheers,

SJB