BFS #1 was never released to the market. Optimisation of BFS #1...

BFS #1 was never released to the market. Optimisation of BFS #1 has never been released to the market but is satisfactory and meets requirements according to the quarterly and my belief is Xstrata is in receipt of this. BFS #2 is a smaller operation, possibly a scenario Nkwe could achieve themselfs with financing via off take agreements but they said it would be completed in May (didn't say released).

A joint venture with Anglo would make sense by including Hoepakrantz in the Garatau project and ventilation shafts used on Hoepakrantz but access via the three existing declines at the Modikwa mine site. The problem with that is Anglo probably have at least five to ten years worth of supply on their own leases in front of the declines before they reach Hoepakrantz.

A Xstrata JV would be great using BFS #1 but the problem being the costs involved to only produce around 200 000 ounces from the year 2014 to 2016 than increasing to 400 000 after that when more power becomes available, anyway that's Xstrata' call to make.

The grand plan is for Xstrata to spend a billion producing a million ounces and realistically to ramp up to that amount of ounces is ten years away. If Nkwe could build a small plant producing 100 000 ounces for say 100 million this would only take two years to repay, Nkwe wouldnt of given any ounces away and market cap would be ounces of resource times about $30 dollars increasing shareholder value as per management's vision. After that funds would be made available to keep increasing production to 500 000 ounces or more over a number of years and Nkwe would be in a far superior position longer term then had it made a joint venture.