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Message: Re: Conference Call
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Mar 29, 2011 09:11AM

I found Dale's discussion on the plan going forward the most interesting as he talked about the revised perspective of the operation with the continuity of the Shoreline Basalt trend which includes 334, L13, L10, 007 and 007E.

IMHO the main reason for the delays in economic production is the evolving geological model. When they discovered the hinge we said the hinge changed everything. Now since the discovery of the 007 and the emergence of the new model (Shoreline Basalt) we have shifted gears again. As an investor for the long term, I do not want management developing infrastructure that will only serve to extract gold in a particular deposit, if it can be developed in a more comprehensive way. There is no point in building an expensive ramp or drift if it has a limited usefulness. Dale mentioned that the SB has been located directly north of the RLM and with that knowledge a plan should be devised that will utilize existing infrastructure to do as much of the heavy lifting as possible. Electricity in Manitoba is much cheaper than diesel so if they can drift out from the main mine and mine upwards using the A-shaft to raise the ore and deliver it to the mill the economics will change dramatically. IMHO gold is only going to go up in price and although I believe self sufficiency without further dilution is a must, I also believe the gold in the ground is an assett that will add to long term value.

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