notice of intent to mine lodged, page-20

As much as I am against hedging, with the possibility of much higher gold prices, it would be preferable to a major dilution or JV. We've got to raise the capital some way, and it has to incur some sort of penalty. No doubt TL will be looking at all the possibilities, and his background has the necessary experience.

The way I see it, we need to gain a cornerstone investor, so there will be some dilution to progress through the next couple of years. Forward sales may well be the answer to infrastructure, including the major expense of the plant. Hopefully this will be at a price even higher than today, maybe capitalising on a good run up in the POG before the price is locked in.

Initial mining will be in high grade shallow deposits, keeping expense to a minimum and ensuring early cash flow. High grade throughput will ensure good production targets are met so as to get out of hedged sales as early as possible. Tailings are a possible bonus for even earlier cash to limit dilution pre-production.