rg - Agree with almost all of that, but it is not quite accurate to say that the alluvial mining requires no expenditure for equipment. Compared to conventional mining operations, the equipment required costs NEXT to nothing but it is still $1-2MM for the processing equipment and other equipment for clearing the surface, removing the overburden and then moving the material to the processing equipment. Still...extremely cheap compared to even the lowest cost conventional methods.

In the latest conference call, the company said it only needed about 1/2 million dollars to purchase the rest of the equipment they required to start test mining. But they announced a PP for $3.25 million. Now they have announced an addition raise of $1.2MM so now we are up to almost $4.5MM or nine times what they said they needed to begin test mining. Generally speaking, I am all for juniors raising money when the money is available. Especially after what happened last fall/winter. In this case, when they are on the threshold of generating cash flow and presumably earnings (if all goes well) it seems to me that the big boys are getting an incredible deal while existing shareholders...not so much. Why offer a half-warrant if there is such strong demand for the offering? Again, great for the buyers, dilutive for existing shareholders. The overall share count is still reasonable so maybe it's no big deal.

I expect that this latest tranche will get closed very soon and then an announcement that test mining has begun will follow shortly afterwards. Then we will see what the market has to say about all of this.