The company needs share capital very soon (see below)Cash at...

The company needs share capital very soon (see below)

Cash at Bank - as of 31 January 2009 $11,000,000

Exercise of Options due 31 March 2009 2,557,594
( 12,787,969 options @20 cents each )

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Total Cash Infow by 31 March 2009 $ 13,557,594

Exploration Spending over the past 6 months $ 16,406,000
(31-12-08 Quarterly Activity and Cash Flow Report
Page 24 Net Operating Cash Flows
for the 6 month period ended 31-12-08 )

Take $16,406,000 divide by 6 months to give an average monthly exploration spend of $2,734,000. If you multiply by 5 (for 5 months exploration spend) you get $13,607,000. So the company will have run out of cash completely by 30 June 2009. This means that they need to do a new Capital Raising by 30 June 2009 (approx) based on current exploration spending).

It is the high level of exploration spending above which will adversely effect the share prices over the next for the next 12 month period. The exploration spending appears way too high. Most of the exploration spending is not being written off but capitalised on the Balance Sheet.

Always seek independent financial advice from a licenced professional before buying or selling securities as your financial circumstances are not known)