ab pre feasibility, page-29

i spoke to KIM, company.

nice chap,

JUNE PFS is the answer.

Reason that it is a little further out than planned, was that some of the work on it by the first group doing it, had cut a few corners, and then KZL, said would want to provide extra detail, so have another mob doing more comprehensive.

Spoke about it in general, it will cost about 200m to get to a stage where the ore body can be properly assessed for mine planning,,ie trial mining required, drill shaft down, and cut into the ore body for about 2km, to determine its shape and develope mine plan from there. (current drilling on a 200x400m i think he said,,and 2m cost for one drill, so you wouldnt drill it out, but he did sa, that once you were at depth with the shaft, you can drill down there for much less to plan you way forward.)

Next, Mungana gold, prospectus due on 20th april.!!!to raise something like 50-75mill, and KZL to retain equity,,,,so mc?? inlcluding KZL equity?? larger. i'd guess at 100mill mc on listing.?? He said it would be competitively priced, ie so it would be over subscribed, and KZL holders recieve priority on a pro rata basis, so then i asked if then there'd be a minimum garanteed, and suggested i would likely to have a few hins in the play.
I think he had indicated that there was to be a minimum, but a little fogged there, so check the prospectus when it arrives.

cheers.