open briefing, page-4

From th erecent open briefing:

1. "exploration costs of only US$10-$20 per
ounce"

2. "Our biggest risk is the gold price and we will consider hedging strategies to counter that."

Comment:

In my opinion this indicates a lack of understanding of the dangers inherent to the project should hedging take place, the gold price rises, and so the project incurs a substantial loss when these hedges are marked to market.

If hedging is used as a condition for obtaining project finance from a bank, with the project as collateral, the company then may become at risk of breaking its loan covenants due to losses incurred by marking hedges to market.

Maybe time should be taken reading and understanding what Jim Sinclair says on his MineSet website are the financial dangers to companies inherent in hedging.

Should the company hedge then personally I will not touch it with a barge pole.