2. What happened to the leaked mining law we had earlier this week, why has it not surfaced anywhere else by now. makes you wonder if that was bogus. I hope it surfaces very soon.

I don't think it was bogus. I went over the first draft in detail and what was released was very similar in tone and content.

As I said before, I don't expect substantial changes from the first draft. I believe the final draft is already in circulation, although I haven't obtained a copy myself. I don't know if "leaked" is the right word for it. More likely it is being studied and commented on by the various parties. This is why you've seen optimistic comments from all (but one) company working in Ecuador.

I do believe we'll lose some concessions, but I also believe this is factored into the current price. If you look at how Guyana manages concessions, they do something similar. You can acquire large area prospecting concessions, but once you've made a discovery, the assumption is you'll be focused on that area, so some of the concessions revert to the state.

I believe Ecuador will institute some form of auction on concessions. We may want to bid, we may not. Right now the focus is on FDN and the pull-apart basin, which we'll definitely keep. The important point to remember is that old cliche: "most gold is discovered within sight of a headframe." We don't have a headframe as such, but we know where the gold is. Continued exploration in the basin should eventually reveal several satellite deposits which could be substantial in themselves, given the size of FDN (which is still open).

This is why I don't want to give it up for a pitance, or even for a fairly good price. We could potentially be sitting on the next Hemlo or Red Lake, and I'd like to take the time to find out. If there's nobody out there that wants to JV with us, I've suggested the Ecuadorean govt. as partners. I've received a fair amount of criticism on this point, but for various reasons stated elsewhere, I feel it's a sound proposition.

Ask yourself: Who would you rather deal with? A govt. that is sincere in its desire to develop a significant mining industry and needs a high quality demonstration project, or the Canadian Mining Oligarchy, with their cozy insider arrangements and blatant manipulations?

To me, the choice is obvious.

ebear