Ann: Loan Facility , page-11

Chairman, Kavanagh maiden resource announced, 100,000 oz @25.2 g/t. They are very good figures. Distance from current workings is only about 300m and all above the 400mb level. You would expect that at those grades the cost per oz will be significantly below the current gold price and should be below $1000/oz. Total value around $150mil, so profit $50mil+ (guessing). Further resource upgrades possible as mineralisation remains open. The loan facility should provide enough cash to get to where the gold is unti cash flow starts (if they haven't got enough left from the cap raising) and in my view seems like a sensible thing for the company to have done - it's only a facility at this stage to be drawn upon if necessary (though $3mil drawn initially to avoid loan fees) and provides the option for a cash backup until money comes in from the new resource.

Seems like a pretty good spec buy at current prices to me. The new resource should be worth at least a few more cents on the current price, maybe even to take it back over .20 once people get a little nore confidence nithe company.

You have to wonder if the big drop down to 10.5, now quickly back to .135, was just a bit of a tree shake by someone who had a pretty good idea of what was coming?