what do others think, page-11

Hi Ubid (and everyone else) ---

I hope I’m not leading you and any others astray --- bad enough leading myself, so to speak.

Remember I’m just the average punter like everyone else --- if I knew for sure what was going to happen, it would be all to easy.
I'm not really into short term trades --- so we are talking time here.

Brian Johnson to the best of my knowledge has a good reputation --- when significant people stand down from successful companies (retirement of Mount Gibson’s founding Managing Director and current Deputy Chairman, Mr Brian Johnson, effective as of 30 June 2007) and have both a management and equity position in a junior --- it is worthy of note.

I think I have enough shares in EVG --- so it is in my interests that the company is successful --- give or take a few cents the shares still trade about my entry price --- but I simply bring the shares to peoples attention –
There could well be other negatives out there that I am not aware of --- if so let me know.
They are behind their original development schedule --- but not seriously so.


EVG do have a fair degree of risk involved:
--- Including the successful placement of 100 million shares that is currently underway
--- The final stages of negotiating a US$22.0 million facility with its bank for the project finance for the Las Lagunas project
--- And as it says in the prospectus “The Albion Process is yet to be applied commercially. Although the technology has been tested through a pilot plant, it will need to be scaled up for production.”
Fluctuations in the gold price and the A$ will affect outcomes --- the strong A$ will make it cheaper to construct as cost are in US$ --- but would affect earnings, unless the strength of Gold price out performs the upward movement of the Aussie.


THE POSITIVES:

(1)
Note gradual increase in Brian Johnson’s Shareholdings.
To the best of my knowledge these figures are correct.

4th Oct 2005: 0 shares

19thNov 2005: Purch 664,333 @ 15c ($99,650)
Holds: 664,333 shares

2nd Aug 2006: Purch 753,000 @ 12c ($90,450)
Holds: 1,417,333 shares

3rd Oct 2006: Purch 525,000 @ 9c ($47,250)
Holds: 1,942,333 shares

20 Dec 2006: Purch net 995,834 shares @ 10c
Holds: 2,938,167 shares & 40,000,000 options
*** Granted 40,000,000 options ex @ .25 on or before 31 Dec 2009 -- Allotment of Options over shares in the Company as disclosed in Prospectus dated 21 November 2005 for rights and liabilities to utilise the Albion process under the Exclusivity Agreement

20 Mar 2007: Purch net 600,000 shares @ 10c
Holds: 3,538,167 shares & 40,000,000 options

25 May 2007: Purch 3,040,000 shares @ 12.5c ($380,000)
Holds: 7,940,827 shares & 40,000,000 options

02 July 2007: Purch 842,105 shares @ 19c ($160,000)
Holds: 8,782,932 shares

28 Sept 2007: Purch 1,000,000 shares @15c ($150,000)
Holds: 9,782,932 shares (10.64%) & 40,000,000 -- 25 cent options 31/12/2009


(2)
Currently have 4 projects in the pipe line which is one up on the previous post:

Estimated Production net to EVG: @ 10th Oct 07
(1) Las Lagunas: 70% of 80,000 oz: ---- 56,000 oz (com. by the end of 08)
(2) Trujillo (stage 1): 50% of 65,000 oz: ---- 32,500 oz (com. by the end of 09)
(2a)Trujillo (stage 2): 50% of 65,000 oz: ---- 32,500 oz (“quickly as possible?”)
(3) Shandong: 80% of 60/70,000 oz: ---- 56,000 oz (com. by the end 2010)
280,000 oz 177,000 oz. net to EVG


Estimated average EVG after Tax profit from:
(1) Las Lagunas: Dec 2008 ---- AU $ 9.7 million/year *(July 07 presentation)
(2) Trujillo 1: Dec 2009 ---- AU $10 million/year *(July 07 presentation)
(2a)Trujillo 2: …... 2010 ---- AU $10 million/year *** (Ann 10 Oct 07)
(3) Shandong: July 2010 ---- AU $10 + million/year ** (July 07 presentation)
Total estimated after tax profit: AU $40 million/year


(3)
** Current MC @ 18c allowing 330 million shares (fully diluted) = A$60 mil.
** EnviroGold’s first generation of projects in the Dominican Republic, Peru, and China are all expected to operate for at least 10 years -- all are planned to be operational within three years (as @ Oct 2007)
** In addition, EnviroGold’s business development manager for Latin America is focusing on prospects in Southern Peru and a number of other locations in Central and South America. + China of course.

********************************************************************

Hope this cut and pastes okay --- regards cy7