strategy

If I am right in believing that the intention at Laverton is to continue mining following exploration success and profitable pog levels, then clever thinking would be to apply for the removal of the 75000 ozs threshold for a reasonable agreed price (600,000 dollars) whilst little activity is apparent, giving the impression that 600000 bucks is better than nothing, and then on securing said deal, commence refurbishing and increasing capacity of Barnicoat mill in the near future. This would leave Laverton clear of debilitating financial encumbrances, and with a far more sensible and sustainable mining operation complete with year round milling facilities, which could even be used for processing by other outfits close by if necessary.

This would also make Laverton far more attractive as a going concern to potential purchasers out there if the need to sell arose.

Then all we need is success in finding the grades they are convinced are there, coupled with pog at levels everyone knows they would be without the outrageous manipulation going on at the moment, and this sp would be through the roof compared to now on Laverton operations alone.

If you then throw in the distinct possibility of exploration success at Coolgardie, you have an overall first class operation run by fresh ideas at less costs which at the very least would be much more of a savoury take over target, and at best a first class, well run and highly profitable business with an sp that reflects this.

Major downside in all of this is - and always has been in my opinion - the distance between the two operations.

Having said that, Focus seemed to be making a reasonable fist of running the two before pog dipped below sustainable levels, and I am sure the Chinese will find a way to continue or even improve the status quo when required.

Obviously Barnicoat will considerably deplete finances that are left, and so timing will be everything, but If the grades are found and the pog is right $1270 oz as I type, I feel Shandong will be more than happy and able to provide even more working capital to see it through.

Just my thoughts and could be talking jibberish, but on several different counts the next few months could be something of an eye opener.

Good luck all!