IP at Crosswinds, page-50

That’s a sad story and you sound very genuine in your conclusions.

I’m new to the company. I’m only here because of Frewena and because geoscience Australia did a lot of great work which will benefit the company directly. Of course kudos to the guys that picked up the Frewena tenements as well. I would not have invested in the Peru projects and I think ICG should exit these in the most gracious way possible.

After your post last night I went back and read 10 years of quarterly reports. My conclusion is that certainly management are guilty of falling in love with projects that had a low chance of being a commercial reality and then throwing too much money at these. Perhaps to add insult to injury, they may have also taken too long in throwing good money at bad as well, prolonging the pain. Exploration is a tough game and the success rate is low, so failing fast and cheaply and moving on is essential and I think that is where the company has fallen down in the past.

Moving forward, there are a lot of targets and we may have fallen in love with them which is danger. They all tier 1 targets which is an exaggeration IMO, although I agree that we have some great targets, tier 1 is a high bar. We can’t spend years and $12 million to find out. I’m keen to see a plan to fail fast rather than a plan to drill everything and spend all the money. To me, what’s the least amount of money we can spend to eliminate targets and move on quickly to focus on targets that are likely to pay.

You are a lot more persistent than me, I would have sold out long ago and taken my losses. I won’t stick around this time if we do another Riqueza NE and drill several 800m holes at a single target in a jurisdiction run by a Marxist government that openly want to shut down mines to appease the spirits of the land. When I saw the first news from the first hole at Riqueza NE it looked like a bust to me, but the drilling just went on and on and on. Even if the drilling had hit something, it would have been worth little due to the crackpots runnning the country. It was just blatant capital destruction and painful to watch.

That said, I don’t know Ross and I hope he’s learnt some lessons. I am looking forward to getting started soon at Frewena in a logical and cost efficient manner. I think everyone is keen on some news on how that will be achieved. In the meant time, I’ll reserve my judgement.