presentation, page-7

Very encouraging news..

1) They will need $12,000,000 for all drilling, PFS, DFS and EIA approval.

Of this, they will need to raise about $7,000,000 (assuming $5,000,000 from sale of non core assets)

At current prices of 13c/s, they may raise at 15c/s (rights issue and private placement as per announcement today).

This will be about 50m shares to give a total of 205m shares.

Depends how they finance the development cost for the $88m plus $26m (sustaining capital). They may consider a minority placement (as announced today) to fund a portion of it and another small equity raising to cover the remaining amount with some debt.

It seems that the numbers stack up for a robust operation with minimal dilution.

At $500 total cost/oz, even with the gold price at 1100 or 1200 an ounce, that is 600 to 700 NPAT per ounce. For 65,000 ounces, that's NPAT of $40m. With a PE ration of 8, that's a Market Cap of $320m.

Keen to hear everyones thoughts