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Message: important facts

important facts

posted on Jun 23, 2008 11:46AM

Here is some of the important stuff that I took away from the meeting.

- the high grade D shaft drill results and Hinge drill results will be included in the 43-101 when it comes out. They are cutting off the drill results from the Hinge zone now so simple math puts the 43-101 out about 2-4 months depending on lab time and the time to include in the 43-101.

- the high grade D shaft will start coming out of the ground at a rate of 100-150 tonnes per day starting in third qtr. Between that and ramping up the production of the mill they should be cash flow netrual sometime in the third qtr.

- the employee stock purchase plan does not provide a maching by employer clause. If the employees receive a discount it will be limited by the listing regualtions (30% max). I expect something more like a 10% discount. The employees also get the benefit of buying it on a loan financed by the company so they can take avanatge of low prices now.

- Institutional ownership is 60% already. That is what is driving the higher volumes lately. 12% insider ownership. So 72% in strong hands. This is very important to me as it provides for more stability.

- the Hinge zone is one of 6 axes that they believe exists.They believe that the axes run all the way down to the 5000 foot level. There is a whole lot of gold down there. They will remain aggressive in their drilling campaign. The market is focussed (rewarding with higher share prices) on expanding resources more than expanding production right now.

- if any new financing were needed, their preference would to be to give the existing shareholders the first crack at it (not to say that they do not look at all types of financing).

JFF7

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