price below 4 cents now, page-8

Hi BB,

I think the big top was well and truly up and running prior to JWs departure. The main problem has been a massive overstatement of grade and reserves as pointed out in numerous submissions to HC.. Grade around 3.5 to 4 gms never eventuated and parts of some of the pits had been previusly mined out showing insufficient drilling prior to planning and mining. MH is certainly guilty of relying far too much on JW supposed expertise in Resource and Reserve work and handling of personnel.

I believe the grade in the current pit ( Alpha I think ) is closer to that estimated at 3 to 4 gpt but problems with the plant caused a reduced throughput over the last couple of weeks with stockpiling of decent grade which should produce soem much needed revenue, again the debt is responsible here as I would think the company is operating on a very low spares inventory so minor breakdowns can result in substantial delays. The board however is still not addressing the financing as it appears to still think it can trade itself out of the debt with production. A good run for a few months while the current pit is exhausted may retire some debt but the exploration effort required will be quite substantial.