avo extends for 1 wk and declares offer final, page-18

Fair enough Sally_Will. Each to their own. I don't pretend to be an expert in these matters. I honestly did my best to try and examine the RMS JORC statement but try as I might I could not find it anywhere on my online broker web site. But I recently found it on the Ramelius web site. I note it is tucked away (for obvious reasons) in an ASX announcement from Nov 2007 and it states:

"Initial indicated and inferred resource of 540,000 tonnes @ 4.8g/t gold containing 83,200 ounces"

Then they clarified this in Dec 2007 with:

"Following a number of enquiries from shareholders relating to the Company’s recent announcement on 28 November 2007 regarding a JORC compliant resource estimate at Wattle Dam, Ramelius wishes to make the following clarifying points:

• Ramelius has elected to prioritise the recommencement of mining at Wattle Dam. This requires various approvals and permitting. The first step in this process is to complete an initial resource estimate to allow the Company to complete an underground mine design and mine plan for approval by the Department of Industry and Resources.

• This initial resource estimate whilst modest, contain two high grade zones which are estimated to contain 70% of the gold (~58,600 oz) at an average [cut] grade of 16.5 g/t gold.

• While the Company is working towards defining a large resource base, Ramelius is now confident that this robust resource is sufficient to commence a profitable underground mining operation.

• Ramelius is not constrained by the necessity of defining a huge resource base before it elects to commence mining and milling operations because its existing infrastructure and processing plant means it does not have the usual huge capital requirements of a new stand alone operation.

• Ramelius believes that the initial resource statement does not reflect the potential gold mineable at Wattle Dam and the Company is extremely confident of significant grade overcall from the reported resource estimate. This is supported by the Company’s experience in the open pit stage of Wattle Dam where a mining reserve of 75,000 tonnes @ 5.86 g/t for 13,250 ounces was established and gold
production to date is 29,000 ounces.

• The Company wishes to reiterate that drilling results from the reported ‘Super High Grade Zones’ including individual assays of 6770 g/t, 3687g/t and 399 g/t in zone 18 were ‘cut’ to 50 g/t and individual assays of 1783 g/t, 1087 g/t, 892 g/t and 470 g/t in zone 3 were cut to 200 g/t in accordance with JORC requirements.

• This resource estimate does not include the results of the current diamond drilling program which is ongoing and is designed to test for continuation of the high grade zone at depth. Ramelius expects to increase the reportable JORC compliant resource base when all results are received from these drilling programs.

• The fundamentals of the Company have not changed, but we are one step closer to mining this spectacular gold mineralisation at Wattle Dam."

I take particular note of the line "Ramelius expects to increase the reportable JORC compliant resource base when all results are received from these drilling programs." It seems to me this was never done. Why?

I have no problem with RMS per se. I just think there are better options out there, like SLR who just get on with the job of mining. They have spectacular grades, possibly less so than RMS, and they're also mining underground, but they get on with the job of producing record levels of gold and revenue while increasing their resource base at the same time.

You have also got to ask yourself why RMS have made this bid for DIO at this time? I agree with Dunnycan's assessment that maybe all is not what it seems at Wattle Dam. Plus you have to admit that yesterday's rise was ultimately a blip on the radar.

On the other hand, if they can ramp up underground production and maybe increase their resource base I will be the first to say well done and may even be back on board.

One thing seems certain - there will be further consolidation happening in this region.

Good luck to all!