Ann: Presentation - Precious Metals Summit, Colorado, page-18

@nordesmic

Watched the presentation the other day. Thought Richard needed to wake up a little at the start (maybe too late a night or something). Also harping on about how the last study was received by the market is a bit old hat. I can understand talking about that in previous presentations but that should be left in the past from now on IMO.

I think he gave a clue in the talk about how the underground development might be approached. I'll re-listen and then give comment.

Also he hinted at the chance of M1 and M5 being related at depth. It's difficult to think that far ahead when you are at this early stage of development but if that were the case this asset would surely be being underestimated.

He was talking about results due from positions at 700m (vertical depth??) with visible gold?? At M1.

I think if the deposit extends to these depths then it could quite easily extend to depths of kilometres. What's more if there are relationships between M1 and M5 at depth the chance of finding other high grade shoots should also be high. I'd suggest to Richard that he looks at the seismic surveys that NST have been employing with great success. They could find him his next deposit more cheaply, although I'm not sure if that capacity exists in BF yet.

The only thing that worries me a little is the strike extent of M1. It almost seems like a deposit you would want to mine in an old fashion way with a shaft and head frame, which would also allow you to take advantage of the cheap workforce in Africa to bring costs down. This method is a bit limiting however if you eventually find lateral extsions but if the deposit is drilled carefully in the first place then I'd think it might be well suited. Declines seem expensive for laterally confined near vertical lodes, but I'm no mining engineer so take that with a pinch of salt. I'd wait for a DFS before taking any AISC numbers too seriously. Also given the very high grades, theft control will need to be implemented very carefully. In a country where wages are measured in a few $US per day, some good smuggled chunks of 1000g/t ore can help one's prospects.

I'd also heard rumours they'd gone down to 4 rigs during the wet season which can stretch out to September in the south of the country. I'd say the drilling activity will be picking up coming into Xmas and into next year as they compile new resource estimates in preparation for the new feasibility.

If the ore body at M1 holds its grades at depth, WAF might be a stock where buying the dips over the mid-term might pays dividends IMO. Once the suitors come however it's pretty much game over, give or take a 5 or 10cent sweetener on top of any offer. It's been a while since I've seen a bidding war on a gold company take-over. I wonder if WAF will be that stock?

Eshmun