Haven’t posted in a while, but as a long-time shareholder I’ve...

Haven’t posted in a while, but as a long-time shareholder I’ve watched some of the commentary with interest.

Firstly, I tend to agree it’s a conservative FS.

What people seem to be neglecting is that directors are focussed on getting the project into production asap, rather than raising and drilling raising and drilling…With an initial 100koz in the first couple of years, payback within 18months and the exploration upside, this will almost certainly yield over 1moz and be a blue chip, simple to mine open pit.

RMS could be looking at EXU given their proximity at Edna May… they could potentially relocate the Edna May mill and truck the  Edna May high grade UG ore…. Just a thought, probably less of a cost than doing their proposed stage cut back at Edna May.


BFS and final project financing due in Oct, so there is time between now and then to prove up some more resources, as quite rightly stated by others, more resources is what’s going to transform the project and that’s what the screaming need is. John and co have done a good job up to now, they have identified numerous highly encouraging and exciting targets…. It’s time to get busy and focus on drilling… turn those targets into swiss cheese please. Still have $6.8m to complete some decent drilling.

Other observations… the current drill spacing, and modelling has meant that as you move further away from a hole, the grade dilutes so the existing drilling would be understating the reserve. With closer 10x10m and 20x20m drilling, I think we can expect there to be an increase in head grade above the current 2.09g/pt …. Perhaps to 2.2-2.5g/pt, which will be very appealing as an open pit.

Banks want to see a reserve plus payback of 30% (which means you need to fully repay the loan and still have 30% of your reserves left based on the upfront mine plan), so debt financing shouldn’t be an issue and given gold price is circa $1730oz and a relative dearth of 100koz projects looking to secure finance, it’s actually quite a good time to be debt financing a project…. One of the stupidest comments I’ve read is that they wouldn’t hedge…. That’s ridiculous… it’s normally a prerequisite of banks and why wouldn’t you hedge at $1730-1750 to provide security in the initial ramp up phase, whilst also being a $100oz more than your feasibility numbers….


Pangea- you seem to know a lot about processing and mentioned the CMM plant, does EXU have the same geology and process flow sheet?? Seems a bit more complex which might be the reason behind the higher cost?