What I figure

These are solely my assumptions built up over long observation of the company prior to buying my shares, and continuing to follow the company doggedly over a period of years.

The recent news that the Bingo deposit updated over M&I and inferred ounces means that if the Roy Lloyd mine were to produce 300tpd, then they would have enough to operate for ~2.25 years.

The EP Zone ore grade glacial till stockpile, which will probably accessed first, contains enough to run the mill at full tilt for well over a year.

We are on the eve of fiscal 2014, starting April 1. They would have to run full production out of the EP Zone ore grade glacial till stockpile now sitting unprocessed right beside the grinding mill for a year. They will have completed upgrading the mine road for operations out of Golden Heart by now. That means development of the mine is imminent.

I assume that the processing capacity of the Jolu mill was grossly understated at first, then other numbers were thrown out there to dissuade anyone from comprehending that it has an actual capacity of ~1000tpd.

It HAS TO have this processing capacity, otherwise none of the numbers work at all.

The ore from Roy Lloyd is probably meant to be 250tpd, while the ore from the Golden Heart Mine is meant to supply the mill with 250tpd, which they have taken pains to avoid any notion that a high grade underground mine is there, rather than an open pit mine. It could be that a small amount of ore from Roy Lloyd will be supplied daily to 'top up' over the period of the capital raise.

Once the EP Zone mill stockpile raises enough CAPEX to build a new mill, the money will go to subcontracting construction, the remainder will be used over the period of a year while the Golden Heart mine is built. Once the mine is in operation, then the EP Zone stockpile will be expended.

Thus you have 250tpd from Roy Lloyd mined using shrinkage stoping, 250tpd from the remainder of the EP Zone stockpile after the capital raise is complete. Once the stockpiled EP Zone ore grade glacial till is fully expended, then Golden Heart will begin to supply the mill, having been constructed in the meanwhile.

The Komis deposit is meant to supply the mill, which they have already stockpiled enough ore to supply 500tpd for a year or more. More ore is easily available from the Komis mine, since the open pit mine is already built. Once a year is over, Komis operations should resume, since the overlap will only last a few weeks. (based on the reported 187,000 tonnes of ore that was delivered to the mill but not processed.)

For a period of two years while the mill is being built once CAPEX is raised, operations will continue according to the economics of the PEA, Golden Heart development being completed in the first year.

The 2013 Budget puts a major dent into these plans, but should the gold price achieve new highs, and grade controls are very good, then it should not be a problem. The anticpated average gold price should be greater than ~$1721/oz., over the period of a year of capital raising through processing of the stockpiled EP Zone ore grade glacial till.

I figure this would be enough after taxes to pay for a 1500tpd. mill, plus build the Golden Heart Mine, and have some left over. Should the gold price exceed an average of ~$1721/oz., then the company could very well succeed in raising enough capital.

If the Roy Lloyd mine, the joker in the pile, actually produce ore of a grade more resembling the open pit operation out of the shrinkage stopes, then robust grades may tip the scales in favour of succeeding in achieving the goal.

It seems to me every little bit will help. All ore stockpiled and mine development to date has already been depreciated to its full extent out of minimal earnings during production curtailment, starting in February, 2012, continuing through March 2013, (over a year) resulting in consistent losses.

Prior losses at the end of Q4, fiscal 2012 are attributable to the amortization of loans during that period.

The numbers required are probably 150k oz. of production for fiscal 2014, and a gold price average higher than ~$1775/oz. They have no choice to wait any longer, since the Waterton deal, conferred on Procon who sit on the board, expires in two years.

The company has provided no information to the shareholders to date that this is actually the plan being considered, and that these are actually the facts.

-F6