Ann: Resignation of Managing Director / Appointme, page-23

re: Ann: Resignation of Managing Director / A... Hi lionel,

Thanks very much for posting all that, great information.

On WD, the short life of mine has always limited the project and that is why the market has never fully valued it, as reflected in the SP.
It was always a cash cow.
I have always hoped it would continue to be extended (as you said MA was very upbeat on this), but knew that it may not happen.

AS far as I understand it, WD started out with a resource of 3.5mt of ore, for 106k/oz Gold.
In the last quarterly it shows that the project to date has placed 3.5mt of ore onto the leach pads and poured 113k/oz of Gold.

We have had above expected recovery rates, which is why we have poured more oz's than expected.

It would seem to me that the main pit must be very close to exhausted.

I am a bit dissapointed to hear that the proposed satellite extentions may be uneconomic.



I was very interested to hear about a sale or royalty agreement for Mt Colin.

I have always wondered where Mt Colin would fit, in the longer term for Exco.

It is not very close to any of Exco's other tennements.

How you value it is a little tricky, if you compare it to Great Australia.

Great Australia - 2.2mt @ 1.54%Cu = 33,000T Cu

Mt Colin - 1.49mt @ 2.47%Cu = 37,000T Cu

Great Australia is an open pit mine which is reasonably cheap & easy to mine, whereas Mt Colin is an underground mine, which is much more costly to recover the ore, this may limit the price recieved, weather it be a sale or royalty.



As far as the Dividend goes, I have expected the distribution to be sometime in November, any earlier would be a bonus.


Thanks again for posting up the summary of your conversation with GL & I'm pleased to hear how open and helpful he was.




cheers