no need to get too excited

xxxxxx MOVES A STEP CLOSER TO PRODUCING GOLD

The Directors of xxxxxxx (ASX:xxx) are very pleased to announce that the Company has secured the purchase of the Timbarra Gold Treatment Plant (pictured below) from Placer Dome Australia. The Plant is the processing section of a former operating 2 Million Tonne per annum Heap Leach Operation that ran for 12 months during 1998/1999. This acquisition supports xxxxxx commitment to becoming a Gold Producer.



The Company is currently assessing a Gold Project for heap leaching near its Bardoc landholding and is similarly reviewing the potential of some of its Bardoc prospects to host Heap Leach opportunities that have a low strip ratio such as the Navan Laterite. The strategy is to set-up the
Plant in a central location that will allow the economic processing of material from Bardoc and/or possibly the newly acquired project. The view is to initially produce around 20,000 ounces per annum which would be sufficient to make the Company self-funding.

The Company has engaged the services of Mr Terry Moylan to assist the Company in evaluating these Heap Leach scenarios. Terry Moylan is the former Resident Manager of the Telfer Mine during the construction and start-up phase of the Heap Leach Operation which went from an initial capacity of 5 through to 17 Million Tonnes per annum. He also introduced Dump Leach Operations to Reynolds Australia at their Mount Gibson and Mount Holland projects.
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to give the investigative sleuths, something to do, watso has obliterated any mention of the company (an easter egg hunt, would reveal the name of the company as watso has left a clue).

the above is "factual info". the reality is, that the market is not excited by the prospect, the share price is about correct - and the company has the money to do some drilling ... one thing for certain, is that they will certainly know "where not to drill".

the reality, is that this is a tired prospect, which gets shoveled around. in the process, the vendors pick up a few dollars. the previous mob (ie xxxxx)also paid for the prospect, they did a lot of drilling, they were also looking for another kundana (previously mentioned by watso), but the company also bought a treatment plant with the intention to start mining .... and then walked away - despite the gold price being at historical highs (at the time).

it could be that the axy has paid too much for a prospect, which has already been extensively explored. axy may have been better to have negotiated a 12 month option on the property, and have been prepared to have paid more at the end of 12 months

the above is factual info. every man and his dog, has had a go at this prospect, and axy is simply the last man in the line


xxxx released a series of promising announcements regarding the prospect - and then got rid of it. when xxxx had the prospect, it did nothing for the share price - which in the end was justified. in 18 months time, it will be revealed that axy paid a couple of million dollars in cold hard cash, spent a million on exploration, and then will walk away.

without being too certain (ie do not hold watso to account), but the previous mob (ie xxxx) paid $500,000 cash, and issued about $1m worth of worth of convertible shares - which the vendors could convert into ordinary shares. if the vendors did not convert the convertible shares, then xxxx would pay the vendors about $1m, or failing that, give the tenements back. from what watso can see , company xxxx simply gave the tenements back. it seems that company xxx paid $500,000 in cash, did a lot of drilling, and walked away. a few years down the track it seems that axy will pay $2m , will spend a couple of million on drilling - and will walk away (????)

for the sleuths, please do your best to find out who company xxxx is, read the relevant reports, and then compare them to the axy reports.. there seems to be a similarity (ie the offer of hope)