218m @ 1.3g/t gold equiv: looking interesting, page-25

This is the thing though, I think Jpang is a hard call to get a sense of. The problem is, I think (from memory - could be wrong) that the earlier mispec results for Jpang didn't factor in the cu. Gold was the AUK focus in 2010, so perhaps the (welcome but surprising?) cu results to date have been the reason not to quickly crack on with the resource definition, which was scheduled for late 2010 (and I think they publicly scheduled it in quickly becaue they already had the mispec results, but got pleasantly surprised vby the copper). If so it would seem like a good call ...

We do know that if they go on with Jpang AUK will need to cough up $1m this calendar year for the little plant. We also know that the plant isn't geared toward extracting the cu. I reckon they'll need to get the resource defined in time for the board to make decision on whether to spend the cash on the plant and extend the drilling(which working back from January 2012 doesn't give much time), or to move on, drop the deal and focus on Wgiri. I think the hints in the last preso about buying into nearby IUPs means that they'll hold it, but decision time is near. I hope the keep at it but 6 months isn't much time for the board to take a call. That's why I'd like to see an initial resource defined - even if it covers primarily the gold. Based on mispec results and the AUK drilling since then, it won't be insignificant. You can take the 660,000g and take a punt upward from there if you look at the extra drill hits since Jan 2010.

On the flip side ... they probably want to do everything they can to get both the gold and the copper in the resource so that if they want to continue with Jpang, they can convince the partners not to throw $1m into the little gold plant but instead to build her up into something more capable of extracting the full value.

Nothing not to like about options for the board in any case. Nice return to volume today and reflected in a 0.33 close (its seven months, a tsunami, euro crisis, and a debt ceiling near fail since 0.33 in november last year ... going well in those circumstances!)

COLCOM