interesting read, page-25

Hi Plough,

I think you make two very good points. To expand on them:

There were some pretty positive announcements in July as to the plant producing rich concentrate from tailings - indicating the concentrators were doing their job. But they announced the need for further a processing facility to get saleable gold from the concentrate product. There has been no announcement on how successful or otherwise this has been. I'd like to know why, but I'd guess that the further facility has not been built as yet, and so there is no point in processing more tailings? Any comment?

Having got the plant running on tailings, they then apparently they took it down to replace some items, eg pumps and a lining. During that period it seems that richer ore from underground has become available. Hence, according to info on this thread, based on someone's chat with the MD at a recent meeting, they are now processing a small amount of underground ore.

There are clearly some shortcomings in management's breadth of experience - eg we know the MD is a career geologist, the Chairman a merchant banker, and the other Board members Lawyers. There appears to be sufficient mining and local experience on staff. Also the company appears to account and comply with the ASX pretty well. So what is it not doing well?

Delivering on time, on budget, and communicating.

Clearly something needs to be fixed, but you can't fix anything without CASH.

The $ 10 million capital notes partnership with the UK fund (announce when - March?) is a real coupe. This facility is in place now - but why did it take so long?

The key role of a Manager is communications. I think this company's external communications have often been appalling. It's frustrating for me as a holder to have so much left to guesswork and analysis. Few investors put the effort in. But I'd bet that internal communications may not be better?

Based on all this thinking, I would not agree with you as to "Management Changes" being needed. But rather, some additional Management team members are needed before the "puppy barks", and they get on tract to the stated objective of "being a significant Victorian producer".

Problem is, when you are close to broke, and not in reliable production, you tend to attract only idiots (like at least half the junior mining sector?? ).

But, with the Capital Notes approved, and now a (apparently) at reliable break-even production, the cash impediment to attracting good people may have gone? Preferably a senior manager and communicator, and maybe a top board member with a really good track record?

I have thought I have made a mistake selling up other gold investments to get into this one. And like others, am pretty frustrated with the delays, and especially the decline in value when common sense says that value should have gone up 5 times.

But whenever I re-analyse, this one has lost half it's value in recent months, but others I was in have lost more, and I still remain convinced that this has far more upside than any other I have looked at (with is around 40 juniors).

So I am expecting some small Yaps in the near future.