spoke to the man

Ok Guys

Put in the call and got the call back form Andrew within 10 minutes - thats the first plus

here is an attempted summary, I was taking notes while speaking and I will try to kist these.

After all the independant analsysis conclusion was MMN simply used a course crusher. this crated the problem that they couldnt get enough silver out of the solution a the solution was best for silver grades of 300 plus not 80-100. This silver recover was at 30-40% resulting in high operating costs of over $20 per oz

Amtec (independant WA Lab - world leading apparently) lab have revealed in their analysis that by using a finer crusher which they have gone with and done the testing and using a Meryl crow circuit recover rates will be plus 90%. Further analysis ongoing

He expects with current silver price a margin of $9-13.

Went through some base case assumptions of processing rates, recovery rates and he come up with a back of the envelope calc of about 1.6 -1.7 million oz silver per annum. Lets use mid point of margin 11 , thats about 18 million per annum base case. He did say in an ealrier par tof the conversation product of about 17-2 million oz so this may have been perhaps his targer vs base case

Theiy are discussing fiancing options , he mentioned many banks have a lot of cash and are offering very good finance deals in both Europe and Australia. They are considering all options. discussed cpa raising and he said it is an option but will need to be asssesed against whats best for the shareholders.

He said Current drillling should increase resource and will most likely increase the measured and indicated part of the resource increasing confidence of reserves. He didnt mention numbers but said he though resource to reserve converstion should be good.

discussed hedging and he said it was dependant on the finance. he said they may hedge as little to cover operating costs but that was unknown at this stage as the funding decision, form where and how much was not made as yet.

Inereating he mentioned that he had worked 12 months on this without pay, highlighting he believed in the project but said he cant give me investment advice

Hope this helps, has given be condifence that even on a base case will be straing on a PE of under 2 at the current SP.