New Investor for Tolukuma Mine, page-6

IMHO, this story is only just beginning to unfold. I continue to maintain that FNT are in a very good position, regardless of how things play out.

From today's news, it is obvious that the PNG Government/MRA are becoming increasingly impatient and want the Tolukuma ML104 mine and mill back in operation asap. This will be good for the PNG Government/MRA, but most importantly, very good for the PNG economy.

In this regard, I can imagine the PNG Government/MRA offering Lole Mining Limited ML104 without the payment of a major amount of money (originally around A$25 million). Under such an arrangement, the PNG Government/MRA would lease ML104 to Lole Mining Limited as a "complete mine and mill operation package". Having Thomas Lole taking over the operations of ML104 would be a good move i.e. he is well known to the PNG Government/MRA and thus can be trusted to do the right thing.

Under the above arrangement, the taking over of the running of operations at ML104 would be relatively easy for Thomas Lole and his company Lole Mining Limited. It would also now be highly attractive. Why now? A lot has changed since FNT commenced their exploration of EL2531 (which adjoins ML104) i.e. through FNT's exploration efforts, the total amount of gold contained within EL2531 and ML104 is now probably in the vicinity of 1.5 million ounces. Without EL2531, ML104 probably contains less than 500,000 ounces. Therefore, with a mill production capacity of ca. 80,000 ozs of gold p.a., we are now talking about a mine and mill life of around 20 years.

As you can see, the taking over of ML104 is now a far more attractive proposition than it was only a couple of years ago. I would suggest that the PNG Government/MRA and Thomas Lole see things similarly.

Cheers.