bullish quarterly , page-9

As I have posted on and off about various stocks, when there is a deceptive header such as "hmm cash burn and no gold to talk about" if one replies to the poster in that same thread then you then make another post using the same deceptive header. Probably just what the poster who started the thread wants!

As so often happens, just before things really start coming right for a stock it can often look gloomy and share holders lose patience and sell.

From CTO's quarterly:

"A number of actions are being completed to overcome operating constraints. These will help ensure the accelerated ramp up of gold production at the Charters Towers South (Warrior) operation is achieved over the coming quarters...

1. Electric power upgrade to underground mine ERGON has recently confirmed works are on track for completion in late June 2008 to triple the current electric power supply....

2. Equipment fleet upgrade and expansion – the delivery and commissioning of the new mining and drilling equipment continues with the recent arrival of the Atlas Copco 1520 15 tonne capacity LHD loader and the June delivery of the Atlas Copco M2C automated blast hole drill. The fifth diamond core sampling drill is due on site at the beginning of May...

3. Appointment of resident General Manager Mining – the management appointment at Charters Towers, of Mr Garry Foord, will greatly strengthen the technical and operational planning leadership on site to help drive the acceleration of the ramp up in gold production...

4. Introduction of 24 hour/ 7 days per week operations -this change to commence implementation in June can give a 40% increase in working hours per week. This has been made possible by the purchasing of new mining units, ensuring less down time and the increases to underground staff. This is one example of where there is substantial existing internal ability to greatly increase the mine’s gold output.

5.Warrior reef to be opened up continuously for 1,000 metres westwards – to date the mine has been principally developing vertically with only limited horizontal development while mine access, at depth, was advanced... Horizontal development is lower cost than vertical development, but first it was essential to get the depth. The underground development at Charters Towers South(Warrior) will progressively open up the reef for mining and ore extraction along a one kilometre area. The initial aim is to have at least five separate stoping areas in operation at all times, to date mining has been from one area with two currently under development...

Later in June we expect a convergence of several operational improvements. The combination of the increase in operating hours each week, the power upgrade, the equipment upgrades and then a broader access to the orebody will see increased gold output and revenues."