valuation, page-2

Hi SS

Thanks for your analysis. You are obviously pretty schooled up on this stuff.

Intuitively I struggle with the idea that at an NPV rate of 12.5%, the existing 685k oz’s of Au eq (totalling 171m profit at just $250 profit per oz eq), the mine and 7 years of digging it out of the ground would add less than a miserable 30m to our wee Market Cap (to AUD $59.9m)?

Surely this cant be correct?

I appreciate the resource upgrade has not been considered but could you also run the numbers on 1m oz eq when you get some time please?

Also, in your experience when an important milestone like finance is approved how does that impact the ‘risk’ of the project/company? (And therefore the NPV?) It must be understood that management is key here and I think we are on to a winner with JG.

Cheers and thanks again
riskninja