Chuk,Thanks for the feedback...."They are actually hoping to get...

Chuk,

Thanks for the feedback....

"They are actually hoping to get the ML by the completion of trial mining not end of calendar year but timing is not certain."

Can you clarify where I can see this info or was it mentioned at a conference at some point?

I was speaking with the CFO today and there was no mention that they are expecting the ML by end of trial mining.

She stated that the application is in and that "they were hoping to have it granted by end of year". I asked if she meant FY or calendar year and she said calendar year but they could not guarantee that as it is out of their hands.

This is what prompted me to think about the cash position in relation to stage 2.

"There is no plan for stage 2 to run for 3 years that I know of. Stage 2 may only run for 1 year or less before upgrading to stage 3."

Page 16 of the "Technical and Corporate update and broadcast" issued 13/05/2013 ....

- 420ktonnes (indicated & inferred) for 140k oz gold.
- Plant capacity for stage 2 = 150k tpa.

My assumption therefor is 420k tonnes / 150k tpa = 2.8 years

You may be right in that they may choose to go straight to stage 3 once they have some significant funds from stage 2.
I cannot see any info confirming this either way. Do you have info that shows stage 3 commencing well before stage 2 completion?

"Cash flow estimates assuming stage 3 are much higher than yours."

Bit confused here as I didn't mention any cash flow estimates in relation to stage 3.

My stage 2 estimate is based on the same info on page 16 although I think I made a typo. It should be $45m and not $54m.....

140k x $900 ($1400 POG - $500 COP) = $126m = $45m PA average over 2.8 years.