interesting action, page-12

My opinion on this is that the degree of takeup of the placement is immaterial now - whatever happens, the cash will be raised (the amount Magna receives is the only variable) and operations will continue.

My quick calcs show that at an SP of 20 cents, the new market cap inclusive of the new shares will be ~$50mil.

$50 million, with 12mil in cash, plus a developed mine and most of the infrastructure in place.

- Recovery approaching 85% from the process plant.

- A stockpile of high grade ore ready to run in the ball mill.

- A fairly neutral hedge position at the moment.

- Exploration Upside

- Some debt that has been readily restructured by the lender

Risks: Price of Silver Dropping - always a possibility, but the physical demand is pretty staggering at the moment.

The Ball Mill doesn't deliver a big gain in production. My expectation is it will deliver good improvement but as is with these things you iron out one bump and a couple of smaller ones pop up.