phillips river project feasibility and funding

Thought I would start a new line of discussion.

There is no doubt in my mind that the Feasibility Study will give the project the go ahead. If the gold price stays around where it is then the projected cash generation will be much greater than the initiall projected $283m LOM. Remember the Scoping study figures were based on a gold price of only a conservative A$1000.

Five years of further exploration, infill drilling and evaluation have boosted the Phillips River Project into a far more bankable proposition since the initial 2005 (I now call it) pre-feasibility study. To creat a more robust JORC Reserve and Resource was alway the management plan after TTRs earlier funding options hit the wall. Late in 2006 was really the start of the Credit Squeeze in my book. Particularly securing Aussie funds for junior projects was getting pretty tough. There was still some Asian funding around and China was still very keen to covert cash into mining assets around the world.

2010 may be a little different. Although Aussie lenders are still in a defensive risk taking mood and there may be a further tightening of credit......good gold projects will find funding support.

If a project like Phillips River cannot secure conventional proportional equity/debt funding in their own right with support from major share holders and lenders then there a some obvious other options.

With gold producers making cash by the bucket loads (and if Labour wins the next election - they will obviously step up production and attack all the high grade deposits prior to 2012)there will be oodles of cash held for Cornerstone holdings, JVs and M & As. Imagine the current potential scenario of a gold producer with cash in the bank (and growing rapidly) but starting to run down its current resource. Is it going to be a sensible strategy to hunt out some proved up resource belonging to an undervalued junior? Probably. Is Tectonic a potential Target? Probably. The only thing not favouring this is the fact that the are no potential suitors in the near vicinity. If there was a cashed up gold/copper producer with an operation in the near vicinity TTR would have been a target already. In reality this is probably has been and will be good for the long term survival of Tectonic. They therefore can become the key long term Gold, Silver and Base Metal producer in the under explored and developed Ravensthorpe area.

So Tectonic with the initial support of loyal shareholders (one who had offered full or partial underwriting) and lenders who can share the vision will see the Company grow to be a significant and successful mining company.

I am looking forward to the next six month.

I will be "impressed" by the JORC Reserve and Resource statement (will the latest infill drilling move TTR even closer the the magical million ounce mark).

I will be "over the moon" with the very positive Bankable Feasibility Study.

I will be "exstatic" following Labors loss in the 2010 election.

I will be "relieved" to see the successful completion of a $125million funding package and the start of the Phillips River Project.

I will be "travelling" to WA to be at the traditional turning of the first shovel load of dirt (or fist concrete pour) to commence the project and then buy the first round of beers at the Ravensthope pub for Steve and his crew.