What VAN has to do now, is sign an off-take. GMs will be...

What VAN has to do now, is sign an off-take. GMs will be $A400/oz, using the feasibility study numbers. This is the name of the game in the gold sector - leverage to POG. The difficulty is that the co. will be hard pressed to contract at $1500/oz based on M&I resources only, thus, Eq is the likely funding model. The business case is really starting to turn (to the positive), but they need more money urgently. I'd say the weakness of late is related to the probability of a CR, rather than business conditions (as it is looking up).

VAN is going to continue to have a funding problem unless they can bank some decent reserves. In my opinion this is the first step in solving the obstacles in front of them.