Gold Micro ready to explode, page-161

Hi HH,

I bought into MKO with a starter parcel of 1m shares with a view to building a decent stake and until the latest ann. on the lease deal was considering getting out rather than increasing. I was also a bit concerned with the tight register and the overlap with EAR but think that Ruane and Co. have such a large stake in MKO that they will be looking after MKO interests in any deals even if they are backroom. EAR does seem to have had a lot more attention over the last few months with a string of good announcements and I was getting worried that MKO was getting left on the backburner.

On the surface the lease deal does look like a game changer for MKO. Even if they do at break even to run the plant, they get the plant back in operation at the lessee's cost and become master of their own desitny. EAR feed stock becomes optional for them rather than a necessity to re-start the plant, although processing at BW will now probably be very good for both EAR and BW. They can toll treat for smaller tenements in the general area and can now start developing their own mine plans.

Controlling the plant is key and spare capacity will likely be very sought after for the next few years in this gold market. To build a new plant for others around the area is simply not an option unless they have significant reserves and LOM.

Looking forward to seeing who the Lessee is and what the conditions precedent are but for now think this is looking very good.

Cheers,

Barry