Cambridge House, Jan 22, 2012

From what I understand by the presentation, we have a defnitive statement on how many ounces of gold will have to be produced by the end of the quarter. By the end of January, the company will probably have produced ~12,000oz. (1.16X the total to Jan. 22)

The average realized price will be slightly higher, though the company seems to be only reporting in U.S. dollars, and not $CDN, which is a little higher still. All of the operational and developmental costs are paid in $CDN.

It also seems the company is very slow to develop its Komis deposit, and at the same time, Roy Lloyd mine results are not forthcoming. The company will have raised the berm on the Mallard TMF or at some point will be required to do so, it has underground developments under way in Roy Lloyd and Komis (a cross-cut which had previously been unannounced.) The Roy Lloyd mine is still being presented as solely an ore shoot, while the company insists at the same time that the deposit is open along strike and to depth.

The mill remains under-utilized, though this is the first time the company firmly states a processing rate of 700tpd. Judging by the ounces produced, the mill is still under utilized for Q2.

Profits from the mining and processing should be in the area of ~$8m. This is barring any unforseen developments that the company failed to announce.

If the Net And Comprehensive is about ~$8m., after paying all costs, then a theoretical dividend payout on the outstanding shares should be 3¢ per share for the quarter.

The portion of the EP Zone that goes to depth and the orientation of the Riddle Till were FINALLY revealed in the presentation in a childish drawing. This information had not appeared to date.

Company Website