steer clear, page-23

The ore is basically sitting at surface. A loader and truck should just about cover your capex. Truck it to one of the two mines who have indicated they would be willing to toll treat and way we go. Craig McKay informs us that this deposit can be mine right now but they are after 1M o/z deposits so the are drilling it with an intention to grow its size. The low grade 140K deposit (what I'm talking about above) is expected to grow to 500K. But its the high grade 20K oz deposit which has hardly been drilled as this was done when the previous major which owned it sacked everyone and closed it down. There are two high grade hits with no follow up. This is the area that GMR believes has the potential to be a large disovery.

Dont get too existed about past management. dae Porter was running the show before but iven he and Crabb's brother Phil Crabb discovered the Sons of Gwalia ore body many years ago, I wouldn't be throwing too many stones.

Whats different is

1. Funding is no issue given Royal Group's involvement.

2. They are getting to look at top class deals because the Royal Group is opening doors for them and are referring deals to their way. You must agree that these small companies usually scratch around forever trying to get access to a good opportunity and most never do. GMR is a very lucky little company having joined up with Royal. Understand that Royals backyard is Africa, they have $billion invested in many projects there. They are extremely well connected and well regarded. When the do something they do it with size. Be in not doubt that further projects are coming and the funding of any size project is a non issue.

If the one that I think is being nailed down is No 3, then you will not be disappointed. They are not playing around here and they know they need to move quickly on such projects because the window of opportunity will close again as the competition gets back in the market once they get funding again (canadian and UK companies) and projects that are being sold or farmed out because the owners are short of capital, will be taken out of circulation again.

they have looked at a decent number of projects but most have been passed over because they dont offer a reason prospect of yielding 1M ounces plus with an acceptable entry price (African deals need to be done with cash, issuing shares doesn't cut it) is what its all about.

Nail these to class deals down now and then drill the hell out of them. Every project secured will have a resource of some size already so the risk in growing the resource not in discovering it.

Once we get through this selling (some clown knocked it from 5 to 4 in not much volume) we should it tighten up again and respond to drilling and the gold price which should burst through $US1,000 real soon.