Hi Dockie, I will have a crack at explaining the drilling dates....

Hi Dockie, I will have a crack at explaining the drilling dates. Am about 5000 klms from the AGM so I am getting this directly from the AGM slides you quoted. Excuse me up front if I simplify this ;

HGO have broken the drilling targets into 1/. Under Mine Targets, 2/. Near Mine Targets and 3/. Regional targets. It is also worth remembering that HGO is an end of calendar year company.

1. Under Mine Targets - This is mainly the underground stuff which they call Nugent and Kavanagh etc and it is planned for drilling in Q3 2018 (so July to Sept 2018)
2. Near Mine Targets - This is the stuff within 3 klms of the plant and in some way links in with the Underground mine targets. This they mention has drill ready targets for Q4 2018 (Oct to Dec 2018).
3. Regional Targets is basically Kanappa and Mt Rhine etc - Kanappa they are obviously waiting on Gov't permits to be granted and have stated they will commence within 2 months (? of now or when granted ?). Given slide 15 says Q3 2018 I am reading that as 2 months from now ! Mt Rhine some time away yet.

So busy time ahead for HGO and I hope they prove up some or all of these targets.

Happy they are looking to progress all of these targets but in the end they will need to place them in order of mining (if worthwhile) in order to ensure that they can provide more ore to the processing plant before the stockpile runs out. I would have thought the underground targets under the mine will be first as I am sure they don't want to be working underwater !

I am liking the fact they are continuing to progress the Pumped Hydro but it would be a waste if this happens prior to getting these underground deposits. So they have until 2021 to get that ore out. Ideal time to start will be when they cease mining the Giant Pit mid 2019. Slide 15, dot 8 says they may consider a trade off to PHES - I hope not !!

Regarding the dividend - remember a 1c dividend is only $5.7m to HGO. With the mining ceasing mid 2019 and the cash really rolling in the door from that time (due to no mining costs) they could do it. Its only a matter of how many multiples of $5.7m they want to distribute to us long suffering shareholders

If I stuffed the dates up please tell me and I will go back to work.