Back when the corporate video was released in early August, I calculated and reported an average burn rate of approx $2 to $2.5M per month based on the stated $40M cash on the balance sheet. Now that the financials are out, we find some $54M in cash listed on the balance sheet as of April 30, 2008. Hence, in roughly 3 months that balance has been reduced to only $40M, implying a burn rate now of approx $5M per month.

With a planned budget of $60M for McFaulds' properties planned for 2009, we have a more immediate need for increased investment $ than I originally thought. I know that when the last PP was announced at $4 the actual SP was at about $3 and then continued to rise briefly to over $6, even with the dilution.

Now comes my concern. What are management's contingency plans? More dilution at embarassing prices? Optioning a % of the properties to a major, thereby diluting our interests? Other possibilities?

Whatever it takes, I sure hope their primary goal is to boost the SP as quickly as possible. More frequent release of assays might help as well as a listing on the big board.

I welcome all comments.

Respectfully yours

geoprof