gold breakout imminent, page-14

I have decided to refer back to the Company's last quarterly report and must agree with some fellow posters that it was a very positive report.

Although it has shown improvements over the 2 previous quarters, the December 2012 quarter's production was hampered by mechanical problems which were largely solved/addressed only by year end or early January.

Production for the said quarter was only 4719 oz. Yes, it was a vast 98 %improvement over the previous quarter but still well under the 69000oz per year or 17250 oz per quarter. 4719 is only 27% of designed output.

Management expects the Q1 2013 plant throughput will be up on the previous 2 quarters. It is pleasing to note "Plant performance is improving and in the last week of the quarter, it was operating at 90% of design recovery in the flotation circuit and 78% in the carbon-in-leach circuit. Process recovery optimisation is continuing in the current quarter with an emphasis on improved performance of
the flotation and carbon-in-leach processes."

It is equally pleasing to note that PGI's planned activities for 1Q 2013 will be targeted on the LL project deferring exploration activities on its other projects.

Therefore we can hopefully expect increased production for 1Q 2013 resulting in lower unit production cost and higher gross margin per se.

DYOR