The AGM was a very quiet affair that was preceeded by light...

The AGM was a very quiet affair that was preceeded by light breakfast and coffee/tea!

We had the opportunity to speak to a few shareholders beforehand, some of whom were expecting a bit of fire to occur - but it didn't!

There was a brief presentation by the Chairman, and a presentation by the MD. The MD focused on the work for the year and talked generally about 2011. One of their focuses is for a 'mathematical geologist' (my words) to have a closer look at the data that has been developed over the years to get a better determination of the location of the gold. If successful, this will allow a more focused drilling program. (yet to be implemented).

As has been presented many times the gold is located in 'faults' that lie in seams that run at an angle. We went down the mine and saw first hand the program being undertaken in a small area. Drilling was progressed through the 'found' ore body and continues until that particular fault runs out.

The problem here as we see it - from a layman's view and from discussions with management and staff both above and below ground was that there was a lot of drilling required to achieve sufficient 'working faces' that would allow a continuous operation.

Probably somewhere between $50M to $100M is still needed for a drilling program from now to achieve continuity - provided the drilling plan is successful.

At the moment the mine is not working on a continuous basis (no Sundays at present) and my view is that this is being done to preserve cash and take a more focused approach.

On this basis I personally do not see much progress for another 12 -24 months, unless a 'mother lode" is found amongst the drilling - or a partner is brought in on some funding/share basis.

The MD's prime role at this stage is to source an appropriate partner/funder for ongoing development and he continues to work towards this objective.

From casual discussions held with management/staff/shareholders on the day it would appear that production for the coming year will not be much to write home about.

The MD continues to talk about a 250K ozs per year mine but does not support that with the plan and investment required to achieve that production - nor the time that it might take - all things being equal. Under the circumstances it has become an 'oversell'.

These are my thoughts and views.

Please do your own research.

Any questions will be welcome but I do plan to report on responses raised from my email sent to the coy on 16/11/10, as they become available.

Regards
DYOR