Ann: Ulysses Gold Project Mineral Resource Jumps 55%, page-25

It’s all good and well to point to drill results etc but an UG mine of this scale needs capital for proper feasibility and development.

GMD have done well so far getting a little cash flow from open pits at Ulysses in that arrangement with the contract miners and toll treating arrangements at Paddington but you can’t just walk straight into UG mining.

There are also other considerations including the suitably of the fresh ore through whatever mill is being contemplated.

This share was methodically being sold down hard before it was allowed to run, I know because I watching and buying the sell down. Now its been allowed to run but the value needs to factor in how all this is going to be funded.

I sold for general portfolio risk mitigation reasons but even if I hadn’t I’d be getting worried as the value is running ahead of itself IMO.

Once they can explain how much money they’ll need to do a proper DFS and how much the CapEx will be, what the expected production and costs might be and how they plan to fund it all I’ll take another look.

I was happy while they positioned themselves as generalised campaign miners/explorers but I’ve seen many pie in sky mining plans go bad. They need to bed down some proper funding to convince me they can transform themselves into a miner no matter what their drill results are showing. Unless of course the results are stunning. How they can do that with the current share price without dilution, I don’t know. They might need to raise a little to complete a proper feasibility and then use a gold loan like RMS did when they reinvented themselves at Mt Magnet.

I’ll maintain my hold sentiment but be aware money is an issue here.Esh