office visit

Today I visited the Jabiru office and Gary Coombs gave me almost an hour of his time to discuss the company. I had a few questions, all of which he answered in detail and also gave the company outlook and plans. So, I will give a quick overview. These are not quotes but my recollection and opinion of what he said.

First, he is still playing cautious as he is not convinced the present rally in prices is sustainable in the short term, but improves for med to longer term

Bentley. He is very encouraged that it it is potentially larger and higher grade than Jaguar. Intersections are thicker resulting in more economical mining. Possibilty of gravy on top gold credits. Obviously still needs much more drilling. Exploration has ceased at present to conserve money. Any cash over a reserve level of around $20,000,000 will go toward drilling. He is planning more drilling in a few more months. Meanwhile compiling and integrating all info into dataset. Other targets of interest north and south of Bentley.

Stockman. This has the potential to be quite a large mine, much larger than Jag. Recent drilling will result in upgrading inferred to indicated and measured resource. Existing old mine appears suitable for rehab which could potentially save as much as $20,000,000 is mine approval goes ahead. Very excited about entire prospect. At present slogging through environmental, native title and all other requirements. Slow but going ahead as expected.

Company plan is to get Bentley proved and producing and move onto Stockman after. Makes for a nice pipeline of projects.

Hedging. Copper is hedged as per $4000.00 per ton but most has been pushed back to later in year to take advantage of present higher prices. So right now JML is getting spot price on LME. He says it's hard to figure sales of hedged product but guessing later in the year there may be a retreat in prices. Six for one, half dozen for the other. Zinc continues to be unhedged.

Ukraine/Cons Min 27% holding. Has good relationship with them and they indicate they intend to stay long term on the registry.

In the latest release he made the statement that by paying down debt it left JML in a position to pursue other opportunities as they might arise. When I asked if they were actively seeking an acquisition he said people were obviously bringing projects to JML but none have passed their internal ruler yet. If a good ready to go project popped up, of course they would like to expand. He feels exposed as a one mine company.

I left very impressed that we have a cautious and prudent management team with thier eye on the ball who are dedicated to success and shareholder return. A nothing flash, down to earth hard working company. That's how you get ten baggers. IMO JML will be an exceptional survivor.