G'Day Q- J.V.-Negotiations obviously hit an impasse as terms...

G'Day Q- J.V.-Negotiations obviously hit an impasse as terms where no agreed to hence they where put on hold or else we would have a J.V. with Anglo in place, i would imagine if terms could be agreed with then its a realistic possibility a J.V. could eventuate .

As said recent CIL results confirm High Grade is recoverable from the mine & huge losses to tailings have occurred  -Fact .

The issue is the plants ability to recover Gold-the plant has been re-Optimised with 5 issues that where quoted to have been effecting the ability of the plant to recover gold for the last 2 years

Quote-During Gell Street’s time on site over the last 2 weeks, Mr Richards identified 5 areas ofoptimisation that appear not to have been carried out in the last 2 years.

 Of particular focus was the Inline Pressure Jig - IPJ, where the jig was re-ragged with leadonly balls.

Up until now the jig was a mix of steel and lead balls.

 Our target is to achieve normalised 75-80% recovery through gravity on our blended oresand reprocessed tailings.

This is good news as clearly additional percentages of losses to tailing can be reduced,

Two consulting experts have also recommended OGX consider further modifications to further enhance recovery requiring minimal capex

Quote: A regrind ball mill and flash floatation circuit is recommendedby Gell Street Mining for a cost of A$200,000 - $300,000.

We received similar third partyadvice from Mr Rob Riggir also of Innovative Metallurgical Designs and Management, priorto

Gell Street Mining’s visit.

As said Q lots to play out - J. V. negotiations may be influenced by current events -time will tell -agree lots to play out.

gltah-salt