Ann: New Gold Exploration Targets Identified, page-10

Thanks, Bobby. It is good to know that you can see the forest for the trees.

I wholeheartedly concur with you. Having the plant and related infrastructure and consolidating that with their gold resources/ reserves is the key here. I watched EAR for a couple of years, but only made the jump once the merger with MKO was bedded down. For mine, this significantly derisked/ unlocked the project, and I could see a clear pathway to production.

BLK used a similar strategy, however (from memory), they paid $6.1m for the Wiluna gold plant and $32m to refurb it. So, close to $40m all up. We need $12.5m to refurb Bronzewing. I also like the potential to toll treat ore from surrounding areas (as an additional source of cash flow). I also feel the crew running this show have the competence necessary for success & that has been lacking in other similar plays of late.

It isn't all doom and gloom. A few instos on the register will build confidence here. Raise at a decent price for ongoing opex. Seek debt financing for the plant refurb. On the latter:

Jan 2017 BFS (Julius only)

Gold price (21/07/17): US$1255/oz
(AUD$1: US$0.79). Gold price in AUD$1,588/oz - a fraction below the $1,600/oz used in the BFS.

AISC est: 1,186/oz
1,588 - 1,186 = AUD$402/oz

The metrics are still holding strong at the current POG. Like you & once the gold buying season picks up from August onwards, I can see the US$1,300 barrier being breached.

Keep in mind, the above AISC includes the BW plant refurb (which makes up $274/oz of the AISC & will be amortised over the initial life of 1.5 years). In the BFS, it is noted, however, that 'any extensions to the LOM may greatly reduce this AISC'.

There aren’t many gold projects out there with similar economics. With an IRR: 117% and a modest amount needed to get the ball rolling, financing shouldn't be too difficult.