Re Valuation, page-25

I think the week starting August 14 is the big one for SAU.

We've been given a few hints about Weolyu. Quartz intercepts with brecciation, slow penetration rates, behind schedule (suppose to start early May, end early July). Perhaps only the first two or three drill hole results will be ready by mid August at current drilling rates.

The main reason I think the first set of Weolyu results will not be released until then, is the Aug 11 cessation of DRP participation. This takes away a "risk free" arbitrage or optionality of investors being able to sell shares on an SP announcement spike and then to have the same amount of shares replaced by the DRP. Eg Weolyu hole 1 is 125 M at 12 g/t Au and 500g/t Ag, SP spikes to 45 cents, investors could sell 1/8th of their stock, tick the full DRP participation box in securitytransfer.com.au and arbitrage 20 cents per share on that 1/8 of their holding without losing a single share. Another thing to consider, would be this sort of Arb selling stifling any SP run.

I think arbitrages are normally fair game, however, in this small company the sophisticated investors would gain an unfair advantage at the expense of less sophisticated investors, including myself. I've already ticked the full DRP participation box at the share registry, knowing that in all probability, Weolyu results won't be released until at least mid August. I could then still have the option to arbitrage, however, still wouldn't, knowing what is potentially in store for Weolyu, Cannon and heaps of other exciting near term news. I think many of the regular posters will be in a similar frame of mind to me.

I like the fact that everyone, including myself, has to make a pure bet on Weolyu and Cannon. Question is " do you take full DRP, partial DRP or the cash ?" I've already made my choice (bet) and the fewer investors that tick the DRP box, the bigger my stake in SAU will be. Therefore, I don't really care if other investors don't tick that box (it's probably more advantageous to me if people take the cash).