placement was perfect, page-2

Totally agree

$2.5m or 13m shares is immaterial in the grand scheme of things. 13m shares is about 7% OF THE COMPANY's CAPITAL

I'd rather a placement to sophisticated shareholders than a SPP. It means that confidence is shown in the company. A SPP is usually a last ditch resort to raise capital and is very protracted and costly for the company. E.g disclosure documents to be sent to shareholders etc.

I'm pretty annoyed with all the dissent shown towards KAL since the ann was made.

The way I see it is, the options expire in July next year. The $2.5m will be more than sufficient to carry them through to the the options expiry.

The money that they will raise through the options expiry (about $10m) will be more than sufficient to carry them through to production.

The mineralisation being close to surface will compensate the fact that the grades are slightly low.

THe sell off yesterday is consistent with the irrationality of the market. Buffet would be buying in at times like these.

A few things I believe which contributed to the selloff yesterday. THey may be petty but that is how the markets operate.

1) The placement obviously and at a price sub 20c

2) The massive delay in the announcement. When a stock enters a ttrading halt and then suspension, the hype become exponential. People are expecting a company making announcement, anything less and the stock gets punished.

COmpare yesterday's ann with the one that was made on the 14 Nov and you'll see that that ann was made a few mins after open. IMO that is the best time to make an ann. It only allows the makret a few minutes to digest the ann and herd mentality takes over.

WOuld love to see emperical studies one day backing up what I'm saying. I may be onto something.

3) Purging of the orders.

I hate it when orders are purged. Once again I dont think purging has the beneficial affect on the shoer term share price that you may be led to believe


4) Market was down yesterday


5) Cancellation of the Q&A forum

This was meant to an invaluable PR opportunity for the company to advise investors not just at the AGM but throughout the whole registry about the development of the Norseman prospect.

The delay in the ann no doubt caused inevitable frustration amongst shareholders which may have led to the irrational selldown of the stock.


6) Selene results not living up to expectation

Shareholder may have thought the results were too low grade. However IMO the grades were great and were way above expectations. THe avewrage grade instead of being 1.5g/t may be 30% higher than that and there will be more than likely a tonnage increase as well. It also hints that mineralisation may be open also.

The Mt Henry results on 14 Nov have not yet been factored into the resource upgrade as yet. THose results were quite exceptional.

On 7 Nov, it mention that there are another 9 areas of mineralisation that have not yet been explored nor appraised by the previous owners.


I am very satisfied with my investment in the company and yesterday's announcements has just further incited me to continue accumulating at these levels.

THe company hinted yesterday that there may be up to 2 million ounces of gold announced in the resource upgrade in a few weeks. Mind you that would be a cut off grade at 1g/t at a cut off grade of 0.7g/t (the figure used by the previous owners), there will be a huge provision for that figure to substantially increase.

When the resource evolves into a reserve, expect that figure to increase again. The resource is only inferred at the moment and slightly indicated. The final reserve estimate when everything is done and dusted will be substantially higher.

Led by a very competent management team, I am very excited by the future

Cheers