update needed, page-8

Hello Climate Change; I thought about toll treating, which is clearly an alternative. On can expect to pay 0.8 cents a tonne km in transport. So with 5Mt tonnes of ore, say being transported 40 km would cost $1.6 million. Toll treatment costs would say be 20% over actual costs (this figure is a guess, I don't have hard data) but lets assume that toll treatment costs $5 a tonne over actuals, then 5Mt x $5 = $25 million, which makes it dearer than buying a second hand mill. Of course none of these figures are cast in cement and maybe on carries a simple gravity sepration on site and subits part or all of the gravity conentrate to toll treatment.

I think you are absolutely right, it would not be in shareholders interests for TMX to make a placement at the current price to buy a mill. There might be alternatives though - borrow the money, give a royalty, cause the 51.5 million options to be excersised etc etc.

At the end of the day it will be a numbers game and I would hope the most commercial choice wins. My purpose in putting the figures together is to show that Bundara appears to be commercial and may be worth around 50 cents a share to TMX. (Based on 88.5 million shares on issue). It also means that the 51 million 2010 options may be excersised, if Bundara were to be developed before they options expire. If my figures are correct then Bundara is worth around 36 cents a share to TMX with the options excercised

All the above is with gold at A$1,400. If gold rises by 20% to A$1680 an ounce, then the NPV increases by 69% from 43 million to 71 million and the value per share to 80 cents. (52 cents with the options excersised).

As I said earlier I have made a lot of assumptions. Some may be wrong because I don't have the data, but I think the global conclusion i.e. that Bundara has commercial merit at the current gold price, is correct.

I would encourage TMX managment to have someone like Snowden and Associates, or Coffey Mining, carry out the sort of calculation that I have done and make this available to shareholders; and if Bundarra has the commercial merit I think it has, then work towards developing the deposit and getting cash flow.

Non of this is investment advice. Please do your own independant research.