Let me take the bait and speculate the following.

Since I don't have a clue what this sentence (in the 2nd paragraph of 6 Aug NR) means:

"The Company will renounce such CEE with an effective date no later than December 31, 2014".

I would assume, for the sake of discussion, the deadline for spending the $26M is 31 December 2014, i.e. PRB has 5 months left to burn through this stack of cash.

Question: Can PRB burn through $26M by exploration and drilling (including assay cost) and analysis of results (including updated PEA, and other report preparation?). Feel free to add anything that would be allowable under the flow-through provision.

- Assumption PRB aquisition of all lands (50% JV, the wedge, lands a round the lake, and lands between Borden Gold and the East Limb) is complete..., either by using the cash in treasury, or by issuing shares plus NSR (dilution is not significant, at least imo). Keeping in mind that $4M from Goldex royal will be coming in (Spring 2014), with a potential of ~$12M from the $2.10 wts which could be exercised by AEM from now until May 2015. So PRB could afford to deplete its current treasury and burn through the new $26M in 5 months. Note: There is an option to get some cash advance, credit line before another round of financing would be required. In other words, PRB would be not be caught in a dire financial situation.

- It must be a massive exploration and drilling program. Say more than 12 drills, most of the drilling would be in the wedge area (an additional 0.5-1.0M oz?) and in the vicinity of the HGZ (including the 600m extension, the current 50%JV, and perhaps in the REC area). The initial emphasis should be near the HGZ so that this could be used to update the resource estimate and upgrade the inferred to indicated category (the 600m extension). Just drill those targets like Swiss cheese, and in parallel fast track the assays and analysis of results (hire several labs and consulting firms... and pay them extra for overtime, if required).

Would it be doable to burn through $5M/each month for all that, i.e. $10M, during the first 2 months? Repeat the same thing for the next 2 months for another $10M. So, the remaining $6M could be used for other activities and production of the PEA and other reports (start putting together most of the PEA together now, leaving the blank space for information from the assay results which can be readily plugged the analysis models/spread sheets to work out the resource and financial estimates).

If the time limit is extended by 1 year, i.e. the deadline for burning through $26M is 31 December 2015, then Dave can slow down a bit with his burning rate. But he doesn't have too. If the burning can be done in 5 months, then go for it.

It sounds like spending like a drunken sailor on a shore leave after many months at sea?

goldhunter