Ann: Quarterly Activities Report - June 2011 , page-3

We are left reading the tea leaves, and please pardon the pun; the need to be patient.

In the tea leaves, clearly management think getting to cashflow neutral or positive will take some time, hence the cap raising.

But the nature of the raising is odd, the offtake agreement is not unusual per se, but why do it? What benefit did the party take in guaranteed supply in AUD at market rate? Only a user of the metal would need guaranteed supply, or someone who anticipates supply being unavailable at any price?

As can be seen with the stockpile, NGX can dig rock out of the ground, finding gold in it is another matter. Can they dig enough out to near capacity of the mill and improve processing efficiency? At this gold price does efficiency matter?

More questions than we can expect answers to. Management have very large stakes in the game, every interest in making it work. And this is true from the beginning.

Stop my ramble here, but for one thing; volatility in the market seems to be increasing, I think we can expect sharp swings in the SP, tradeable perhaps.