Hi Plough - Thanks for the comments.I agree, this is not a...

Hi Plough - Thanks for the comments.

I agree, this is not a spectacular resource but I guess it was never sold as such. The value of this asset is that it can be used to fund exploration for something that is spectacular (or at least modestly viable!).

I use an even smaller resource estimate than you do and come up with a NPV of about $25-35m or about 20-30 cents per share (fully diluted) using the estimated production costs Tony gave in his BRR interview and my guess for the capital costs. This should generate somewhere in the vicinity of $30-$40m cash for exploration. That's a fair bit of exploration for a company this size which will help maintain the value of existing shares.

What the market seems to be telling me is that I'm being too optimistic about the value in the cash terms of the Dulcie project, or people don't like the rest of SXGs tenements and will just fritter away the cash without finding anything of value (the other possibility is that I don't have a clue, and I can't discount that!). I thought the announcement today at least removed a bit of doubt as to whether there was a viable resource there or not.