Hi AllJust spent 40 mins on the phone with Cedric and tought...

Hi All

Just spent 40 mins on the phone with Cedric and tought that I would give you a breif run down on what I was told.

According to Cedric things are progressing well.

They have now got 2 crushers on site at the stock yard a weigh bridge and will soon have a fully set up testing facility on site with a full time chemist and geologist. Cedric is pretty up beat about the Mineral Dealers License as he sees it as an opportunity to make extra cash-flow from disorganised mines in the surrounding area.

Still waiting for modified mining plan approval and should have that any day now.

The 3rd mine site they are chasing will be much larger that the 2 they currently have and are targetting 100 million tonne resource.

Confident that the first shipment will be before the end of the year and will also have a maiden JORC before the end of the year.

Continuing discussions with the off-take partner and is heading to China next week for further meetings. Sees it as being important to continue with the agreement as it builds up a relationship. On the other hand advised me that they would have no trouble selling the ore on the spot market.

Told me he has $1 million of his own money invested in the company and Sean has $500 000 invested. Also 25% of the shares are in institutional hands (Colonial, Macquarie, BT etc).

In his opinion people who sell now will regret it??

Company is in a strong financial position with over $10 million in cash and they are being frugal in their spending. Told me they only fly economy etc. The cost of setting up the stock yard in India is about $50 000 compared to $200 000 in Aus.

Said they had to retract the NPV announcement because they did not have a resource definition. Wasn't happy with ASIC about that either.

Said I and anybody that wants to should ring him with any queries we may have at anytime.


The gist is that whilst I am still nervous I believe that this will be a great investment in the next 6 to 12 months, especially at the current price. I only hope that I will be able to hang on and dont have to sell before then.

Joe