Joe Versus the Volcano, page-35

Thanks Epic

Yeah - it was a very interesting Announcement on 19 December. A "Discovery Reward" to the Tychean Geologist of 10 mill free shares, to be vested if and when he defines a JORC compliant "resource estimate of any category" at Redback.

Hmmm. It's presumably an incentive bonus to keep Matt Svensson with the company. The operation has always run on a very lean cash burn, with very little in the way of funds, so I assume they can't pay him what he can earn elsewhere.

As an incentive - 10 mill shares at 0.002 is only worth $20k, or $30k based on the 0.003 SP when the rights were announced. That's nice, but it's not exactly huge....

So it seems to me that it's only a significant incentive if the company, and Matt Svensson himself, expect the SP to go significantly north of the current 0.002 - 0.003 range. At 2 cents a share, or 3 cents, his bonus converts to $200 - $300k

But that's a Disallowed, and it's only gonna happen if Redback turns out to have a reasonably good mineral resource, with decent prospects for conversion to a mineable reserve. I mean - an inferred resource estimate won't move the SP much, unless it's really spectacular. An indicated or better yet a measured resource would do it - if they are decent.

Better yet, an indicated or measured reserve with reasonable grades and tonnage and a positive DFS to say that the extraction costs will be well below the gold price.... Plus a funding deal to make it happen....

I mean - we won't get that straight away. It'll take several steps and more time, and probably more money, but if we do get to a DFS showing that Redback is a viable and profitable mine site, then the SP will certainly move up considerably and holders will be well rewarded for their risk. Matt Svensson's 10 mill free shares could be worth quite a bit!

So it's only an "incentive" to Svensson if he himself thinks there's a reasonable likelihood that Redback has that potential. And he's the guy best placed to make that call. After all - he is the Geologist.....

So yeah - the 19 December announcement of the "Discovery Reward" for Matt Svensson was, for me, a very positive hint that the people who know the most are feeling pretty confident about Redback.

Oh well Epic - it may also be a bust - and Eshmun is correct to regard as high risk - but it's a whole lot more fun than most exploration plays. I am soooo bored waiting for POS to take off!!! (but still very optimistic) lololololol

Best wishes to all

Dave