Ann: ORE RESERVE ESTIMATE AND POSITIVE PFS FOR COOLGARDIE PROJECT, page-17

I will probably come off as being harsh, but... the PFS is for me very underwhelming. Sure the initial start up cost is low, but... the AISC is $1340! Then you have the issue that this project initially cost PGO approx $10m in cash and shares.... so... you need to take that out of the overall profit, plus all the drilling and PFS costs (perhaps $3-5m?). So at $1600 AUD, the current ounces to be mined will just cover the total cost of the project to date. As they mention, they will be drilling etc to further expand the current deposits, which is fine and will hopefully see the toll treatment deal continue long after the current 28 months. However, the strip ratio is very high at 11-1!

I can understand managements focus, as it the project will create cash-flow, but... realistically, after admin and their continued focus on their Northern project, the profit will not go far. As for the initial start up cost, that is great, but... profits will likely not start being received until March. I honestly think they will need to raise at least a small amount of cash, or take on some debt to see them into actual profitability.

Perhaps once they provide more clarity on the other targets that can be mined, a higher value can be placed on Coolgardie? I do agree with Barret, that there is some risk with the grade. It would not be the first time that an issue like this has really hurt small companies like PGO.

It will be interesting to see what the 'market' makes of this over the longer term.

Good luck to holders, PGO is undervalued IMHO, but... it has a lot of work to do to get its main project up... perhaps it could even put it on hold, until they have some solid cash flow and can prove they don't need to keep tapping the market?