Recent buying is consistent with buyer/s positioning themselves...

Recent buying is consistent with buyer/s positioning themselves prior to M&A activity. The temporary shutdown of the Hill End mine left some of the best stopes so far encountered in ready to mine condition. Potential suitors may be attracted by the prospect of rapid restart of operations.

What drilling at Hargraves has revealed so far is consistent with a significant, medium grade, open pittable resource. This would be a low cost operation with coarse, gravity recoverable gold @5g/t diluted or better. It would ideally suit any of the medium to larger mining houses provided the resource comes in with sufficient ounces.

Smart money is moving in to HEG driven by the smell of a quick profit.

An alternate strategy for HEG would be to joint venture the Hargraves operation and focus on the Hill End mine. Provided costs of production can be brought under control at Hawkins Hill/ Reward, this particular operation has long term potential.

I will be passing through Hargraves and Hill End next week. If I get permission, I will take some photos of recent drilling.