2007 Annual Report. fascinating reading!2007 Annual Report to...

2007 Annual Report. fascinating reading!

2007 Annual Report to shareholders pages 6 and 7.

Page 7 Coyote Total reserves 571,000 tonnes average of 8.4 grams per tonne for 154,000 ounces.

2006 Anual Report page 4. Coyote Total reserves 1,035,000 tonns at 8.2 grams for 272,000 ounces gold.

So its fallen by 56% from 2006 to 2007. Massive gold "loss".

The total amount of gold in the open pits has fallen from 101,000 ounces in 2006 annual report to 37,000 ounces in the 2007 report.

"open pit reserves for Coyote have been diluted by 225% to account for mining methods".... That's enormous in a geological context.

Page 6 2007 Annual. Total mineral resources now 3.1Mt at 4.9g/t for 486,000 ounces gold.

Page 4 2006 Annual report, Total mineral resource 3.78Mt at 4.7g/t gold for 572,000 gold.

"Lost" 15% of the gold in the mineral resource y/y too.

So we have to ask, what happened to all the drilling that had zones of visible gold. It added no additional reserves?, and it failed to add to the mineral resources?

Make up your own mind on this one, but they have already told shareholders they require another $10m cash this quarter and at least another $10m next.

Simplistic way to look at it perhaps? but this is the underlying assets of the company and its going in the opposite direction to what it logically should be.

Usually when you drill holes and find visible gold, you add to the amount of gold you have? Right?

Or was there massive , massive over estimation?

My observations only. NEVER ever investment advice. Do your own homework ALWAYS, or seek independent advice.