non-binding letter , page-31

I'd be happy to see that this is Nevsun looking to get their dirty hands on Koka. They would be able to run Koka ore thru their own mill, particularly because it is high grade for an open pit the ore transport costs wouldn't be too high.

Just looking at Nevsun's december presentation, the gold content of their Bisha mine decreases the further they get into the mine in coming years as copper and zinc contents become the main game. Perhaps they would be looking to increase their exposure to gold. As Aikoner points out they have $227m in cash and a nearby working mill.

Their presentation also states 'Growth opportunities : External - Acquisition strategy'.

It is just speculation that Nevsun may be bidding for Koka but it makes some sense.

I am hoping this sale goes thru and I hope CHN get good terms/conditions. In fact that is why I bought back in yesterday. I would like to see some of the value of Koka brought forward in time and crystallized now rather than waiting for some pie in the sky further down the track. I was invested in GDO when the Chinese consortium made an offer. A lot of people complained but the fact is everyone made some good gains and I doubt that the share price would be sitting much if any higher today than it did months ago straight after the bid. Add to that the way all other gold stocks are tanking at the moment there would be some good opportunities to roll capital from CHN in to others if need be.

Is anyone willing to take a stab in the dark and put a monetary value on what Koka may sell for. Not what its worth but what it would sell for right now. I would guess upward of $100m maybe $130 to $150m ??

Last but not least. Hopefully the way the gold price is tanking right now will not adversely effect negotiations too much for CHN.

We wait and see and try not to get too far ahead of ourselves !