management buying, page-13

The Annual Report just published states that their intention is to fund the project in other capital markets, which probably means north Ameriaca, or to sell Paron either fully or partly. Decison to be made by Christmas. Also they intend to drill for that down-faulted extension this quarter.

They put NPV of $US22.7 million on Paron at the moment based on gold at $US625. If they sell Paron then I expect the very minimum they will get will be $US20 million ($A22 million). They could hang on to say $7 million of that and pay the rest out as a fully franked dividend of say 8.5 cents. Ex-div the shares would still be worth about 6 cents.

If they find the down faulted extension (it has to be there, its just a matter of how big and how deep) and it adds to its economic potential then the sale price would be greatly enhanced beyond its current value.